If the Marginal Tax Rate Is Too High,it Can Cause

question 89

Multiple Choice

If the marginal tax rate is too high,it can cause all of the following except

• A)Businesses to produce more.
• B)Government tax receipts to decline.
• C)The rate of saving to decline.
• D)Work effort to decrease.

---

Definitions:

Absorption Costing

A pricing strategy that incorporates every manufacturing expense - such as direct materials, direct labor, along with variable and fixed overhead costs - into the price of a product.

Unit Product Cost

The total cost associated with producing one unit of a product, including direct materials, direct labor, and overhead costs.

Year 2

Typically refers to the second year of a specific timeframe, such as a company's fiscal year or a multi-year study.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of a product.