XYZ Company Manufactures a Single Product

question 25

Multiple Choice

XYZ Company manufactures a single product.The product's prime costs consist of

• A)direct material and direct labor.
• B)direct material and factory overhead.
• C)direct labor and factory overhead.
• D)direct material,direct labor and factory overheaD.

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Definitions:

U.S. Tax System

A system governing how taxes are collected from individuals and businesses by the federal, state, and local governments in the United States, covering income, sales, property, and other taxes.

Slightly Regressive

Refers to a tax system or policy that places a relatively higher tax burden on low-income earners compared to high-income earners, but the difference is not pronounced.

Excise Tax

A tax directly levied on specific goods or services, such as tobacco or gasoline, usually to discourage their use or generate revenue.

Highly Inelastic

A situation where the demand or supply for a good or service is insensitive to changes in its price.