All of the Following Are Examples of Carrying Costs EXCEPT

question 12

Multiple Choice

All of the following are examples of carrying costs EXCEPT:

• A)rental payments on building where the business is located.
• B)the lost sale if the company runs out of a particular model.
• C)the opportunity costs associated with having capital tied up in current assets instead of more productive fixed assets.
• D)All of these are examples of carrying costs.

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Definitions:

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer's total income.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount rises, thereby imposing a higher percentage rate on those with higher incomes.

Marginal Tax Rate

The rate at which the last dollar of a person’s income is taxed, indicating the impact of an additional dollar of earnings on the amount of taxes paid.