Which of the Following Taxes Is Based on the Ability-To-Pay

question 201

Multiple Choice

Which of the following taxes is based on the ability-to-pay principle?

• A)tolls on a bridge
• B)income taxes
• C)gasoline excise taxes
• D)property taxes
• E)user fees that collect the same amount from each person

---

Definitions:

Ideal Standards

Benchmarks used in managerial accounting that represent optimal levels of performance under perfect operating conditions.

Normal Standards

Benchmarks or norms established for a business process or operation that are considered to be a typical or expected level of performance.

Total Manufacturing Cost Variance

The difference between actual manufacturing costs and the standard costs of those manufactured items.

Direct Labor Cost Variance

The difference between the budgeted or standard cost of direct labor and the actual cost incurred, used in variance analysis for cost control.