Typically Included in the Sales/use Tax Base Is the Purchase

question 132

True/False

Typically included in the sales/use tax base is the purchase of tablet computers and cell phone equipment by a large manufacturing firm whose sales force uses the items.

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Definitions:

Raw Materials Inventory

The total cost of all components and materials that a company has in stock and that are to be used in the production process.

Manufacturing Overhead Applied

The allocation of estimated manufacturing overhead costs to individual units of production.

Raw Materials Used

The total cost of all raw materials that are converted into finished goods within a reporting period.

Job Order Cost System

An accounting system that assigns costs to specific production jobs or batches and is used in manufacturing businesses where each job is unique.