Which of the Following Statements Is Correct

question 214

Multiple Choice

Which of the following statements is correct?

• A)Both tax avoidance and tax evasion are legal.
• B)Both tax avoidance and tax evasion are illegal.
• C)Tax avoidance is legal, whereas tax evasion is illegal.
• D)Tax avoidance is illegal, whereas tax evasion is legal.

---

Definitions:

Variable Costs

Costs that vary directly with the level of output, such as raw materials and direct labor expenses.

Labor

The human effort, either physical or mental, employed in the production of goods and services.

Materials

Raw elements or substances used in the production or manufacturing of goods.

Variable Costs

Costs that change in proportion to the level of output or activity.