According to the IRS Definition, Which of the Following Is

question 9

Multiple Choice

According to the IRS definition, which of the following is not a characteristic of a tax?

• A)The payment to the governmental authority is required by law.
• B)The payment relates to the receipt of a specific benefit.
• C)The payment is required pursuant to the legislative power to tax.
• D)The purpose of requiring the payment is to provide revenue to be used for the public or governmental purposes.

---

Definitions:

Work in Process

Goods partially completed during the manufacturing process; they are not yet finished products.

Manufacturing Overhead

Indirect costs related to manufacturing that are not directly tied to a specific product, including costs like factory rent, utilities, and maintenance.

Direct Labor Costs

Expenses associated with the labor directly involved in producing a product or delivering a service.

Costing System

A method or procedure employed to collect, classify, and allocate costs to products, services, or job orders.