If All Provincial Governments Were to Harmonize the Provincial Goods

question 59

Multiple Choice

If all provincial governments were to harmonize the provincial Goods and Services tax to be the same rate and cover the same items as the Federal Goods and Services tax,we would expect

• A)the AD curve to shift to the right.
• B)no change in the AD curve.
• C)the AD curve to shift to the left
• D)to not know the impact the AD curve since some tax rates may go up while others may go down.

Understand the role of fixed and variable costs in costing methods.

Calculate the value of ending inventory under both absorption and variable costing.

Understand the concept of contribution margin.

Analyze the impact of cost structure on gross margin and contribution margin.

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Definitions:

Compounded Semi-annually

Interest calculation method where interest is added to the principal twice a year, allowing the interest to grow faster than simple interest.

Savings Plan

A systematic approach to setting aside funds to reach financial goals.

Investments

Funds committed into various financial instruments or assets with the expectation of generating income or profit.

Compounded Monthly

Interest that is calculated on the principal and the accumulated interest every month.