When It Comes to the Composition of Tax Revenues from Different

question 21

Multiple Choice

When it comes to the composition of tax revenues from different sources,

• A)developing countries derive the largest portion of their revenue from income taxes and developed countries from consumption taxes.
• B)developing countries derive the largest portion of their revenue from consumption taxes and developed countries from income taxes.
• C)both developing countries and developed countries derive the largest portion of their revenue from income taxes.
• D) both developing countries and developed countries derive the largest portion of their revenue from consumption taxes.

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Definitions:

Variable Factory Overhead Controllable Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead expenses expected, which can be controlled or influenced by management.

Standard Factory Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a certain base such as labor hours or machine hours.

Direct Labor Hour

A measure of the amount of time an employee spends producing goods or services, directly associated with the product's cost.

Normal Capacity

Represents the average production level expected over a specific period under normal operating conditions.