Which of the Following Statements Is Incorrect

question 95

Multiple Choice

Which of the following statements is incorrect?

• A)Property taxes are levied on real estate.
• B)Excise taxes are assessed on items such as gasoline and telephone use.
• C)Gift taxes are imposed on the recipient of a gift.
• D)The estate tax is based on the fair market value of property at death or the alternate valuation date.

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Definitions:

Manufacturing Overhead

All indirect manufacturing costs, including indirect labor, materials, and utilities necessary for production, but not directly associated with specific units.

Planning Budget

A budget created at the beginning of the budgeting period, reflecting the expected costs and revenues based on forecasted levels of activity.

Manufacturing Overhead

All indirect costs associated with manufacturing beyond direct materials and direct labor, such as utilities and rent for the manufacturing facility.

Administrative Expenses

Costs related to the general management and administration of a business, such as salaries of executive officers and costs of the legal department.