Which of the Following Taxes Is Most Clearly Based on the Benefits-Received

question 126

Multiple Choice

Which of the following taxes is most clearly based on the benefits-received principle of taxation?

• A)Corporate income tax
• B)Gasoline tax
• C)Personal income tax
• D)Payroll tax
• E)Value added tax

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Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as utilities, maintenance, and factory equipment depreciation.

Subsidiary Account

An individual account that records transactions related to a specific component, often used within a larger accounting system.

Raw Materials Inventory

Refers to the total cost of all the materials that are currently in stock and have not yet been used in the production process.

Factory Labor

Work performed by employees in a manufacturing setting, directly involved in producing goods.