The Incidence of a Tax Is Determined by

question 45

Multiple Choice

The incidence of a tax is determined by

• A) the relative elasticities of supply and demand.
• B) who pays the tax out of pocket.
• C) whether the supply curve or demand curve shifts as a result of the tax.
• D) how much tax revenue it generates.
• E) how much paperwork there is to complete.

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Definitions:

Job Cost

The total cost associated with completing a specific job, including materials, labor, and overhead.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, calculated before the period begins based on estimated costs and activity levels.

Machine-Hour

A unit of measure representing the operation of a machine for one hour.

Unit Product Cost

The cost associated with producing a single unit of a product, encompassing materials, labor, and overhead.