Match Each of the Following Items with the Appropriate Description

question 63

Short Answer

Match each of the following items with the appropriate description, in determining whether sales/use tax typically must be collected.
a.Taxable
b.Not taxable
-T-shirts purchased by an individual at a rummage sale

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Definitions:

Direct Labor

The cost of wages and benefits for employees directly involved in the production of goods or services.

Raw Materials

The initial inputs in production, including basic substances used to manufacture goods.

Direct Labor

The cost of wages for the employees who are directly involved in producing a product or delivering a service.

Hourly Worker

An employee whose pay is based on the number of hours worked rather than receiving a fixed salary.