Which of the Below Statements Is Accurate When Considering the Ebusiness

question 73

Multiple Choice

Which of the below statements is accurate when considering the ebusiness challenge of adhering to taxation rules?

• A)All online companies must pay sales tax
• B)Online companies do not have to pay any sales tax
• C)Some online companies have to charge sales tax
• D)Online companies that sell physical products have to pay sales tax and online companies that provide intangible services do not

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Definitions:

Raw Materials

Basic materials that are used in the manufacturing process to produce finished goods.

Budgeted Production

The anticipated volume of products a company plans to produce within a specific period, as part of its budgeting process.

Variable Overhead Rate

The cost per unit of production or activity that fluctuates with the volume of output, like utilities or material handling expenses.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the volume of production, such as rent, property taxes, and salaries of permanent staff.