One Difference Between Sales and Excise Taxes Is That

question 118

Multiple Choice

One difference between sales and excise taxes is that

• A) sales taxes are only applied at the state level, while excise taxes are only applied at the federal level.
• B) excise taxes apply to a wide range of products, while sales taxes apply only to a select list of products.
• C) sales taxes are calculated as a percentage of the price paid, while excise taxes are levied on a per-unit basis.
• D) excise taxes are calculated as a percentage of the price paid, while sales taxes are levied on a per-unit basis.

---

Definitions:

Introductory Stage

The initial phase of a product lifecycle, characterized by product launch and initial marketing efforts.

Profits

The financial gain obtained when revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain those activities.

Marketing Costs

Expenses related to promoting, selling, and distributing a product or service, including advertising, sales force salaries, and promotional materials.

Marketplace

An open area or platform where goods and services are exchanged between buyers and sellers, including physical locations and online platforms.