Which of the Following Is Not a General Rule for Calculating

question 19

Multiple Choice

Which of the following is not a general rule for calculating the sales factor?

• A) Tangible personal property sales are sourced to the destination state.
• B) If the business does not have nexus in the destination state, the sales are thrown back to the state where the goods were shipped from.
• C) Services are sourced to the destination state.
• D) Government sales are sourced to the state where they were shipped from.

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that vary directly with the level of production or sales volume.

Net Present Value

A method used in finance to calculate the value of a series of future cash flows by converting them into one lump sum present value.

Net 30 Credit Policy

A Net 30 credit policy is a payment term that allows customers to pay the full invoice amount within 30 days after the invoice date.