Which of the Following Statements Is Correct

question 152

Multiple Choice

Which of the following statements is correct?

• A)Equity is more important than efficiency as a goal of the tax system.
• B)Efficiency is more important than equity as a goal of the tax system.
• C)Both equity and efficiency are important goals of the tax system.
• D)Neither equity nor efficiency is an important goal of the tax system.

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Definitions:

Control Costs

Efforts and measures implemented to monitor and manage expenses to ensure they align with budgetary constraints and financial goals.

Cost Center Evaluation

The process of analyzing the performance and efficiency of a department or unit within an organization that does not directly generate revenue.

Controllable Margin

The amount of profit or contribution margin that a manager can directly influence by controlling costs and generating revenues.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.