Which Tax Is Based on the Value of the Estate

question 28

Multiple Choice

Which tax is based on the value of the estate left behind when a person dies?

• A) sales tax
• B) consumption tax
• C) estate tax
• D) capital gains tax

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Definitions:

Direct Materials

Raw materials directly used in the manufacturing of a product that can be directly traced to that product.

Variable Overhead

Variable overhead refers to the indirect costs of production that fluctuate with the level of output, such as utilities and materials.

Variable Costing

An accounting method that only includes variable production costs in product costs, excluding fixed costs.

Direct Materials

Raw materials that can be directly linked to the production of specific goods or services.