The Final Price of a Product or Service Is the Sum

question 17

True/False

The final price of a product or service is the sum of total cost plus profit margin. 

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Definitions:

Sales Tax

A tax imposed by a government on sales of goods and services, collected by the retailer and passed on to the state or local government.

Proportional Rate Structure

A tax system where the tax rate is the same for all income levels, meaning everyone pays the same percentage of their income in taxes, regardless of how much they earn.

Legislative Regulations

are rules made by a government or regulatory body that have the force of law.

Progressive Rate Structure

A tax system where the tax rate increases as the taxable amount increases, resulting in those with higher incomes paying a higher rate of tax on their income.