Taxation Is an Economic Factor That Impacts on Consumers' Levels

question 31

Multiple Choice

Taxation is an economic factor that impacts on consumers' levels of _______ income (the amount of money available after essentials) and thereby influences the purchase of goods and services.

• A)discretionary
• B)preliminary
• C)recessionary
• D)progressionary

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Definitions:

Transfer Price

The price at which goods and services are sold between divisions within the same company or between a company and its subsidiary.

Variable Cost

Costs that fluctuate directly with changes in production or sales volume.

Cost Driver

Any activity or factor that can cause a change in the cost of a product or service, used in activity-based costing to allocate costs accurately.

Support Department

Departments that do not directly participate in the primary activities of a business but provide essential services or support to those that do.