Which of the Following Would Indicate That Income Tax Is

question 104

Multiple Choice

Which of the following would indicate that income tax is progressive?

• A)High-income people pay $3,000 in taxes;low-income people pay $1,000.
• B)Low-income people pay $3,000 in taxes;high-income people pay $1,000.
• C)Both high-income and low-income people pay $1,000 each in taxes.
• D)High-income people pay 20 percent of their income in taxes;low-income people pay 10 percent.
• E)Both high-income and low-income people pay 10 percent of their income in taxes.

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Definitions:

Profit Center Manager

An individual responsible for managing a segment or division of a business that is treated as its own unit for the purpose of calculating its profitability.

Operating Income

A measure of a company's profitability from its core business functions, excluding non-operating income and expenses.

Support Department Allocations

This is the process of distributing the costs of support departments to producing or operational departments within an organization.

Operating Expenses

Expenses incurred during routine business operations, including rent, utilities, salaries, and advertising, but excluding costs of goods sold.