Average-Cost Pricing Consists of Adding a 20 Percent Markup to the Average

question 60

True/False

Average-cost pricing consists of adding a 20 percent markup to the average cost of an item.

Comprehend payroll accounting, including calculating payroll taxes expense and net pay.

Grasp the accounting procedures for special payroll considerations and employee benefits.

Understand and apply the correct journal entries for notes payable and receivable transactions.

Identify and record employer and employee responsibilities regarding FICA and unemployment taxes.

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Definitions:

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, disproportionately affecting lower-income earners.

Progressive Taxation

The tax as a percentage of income increases as income increases.

Proportional Taxation

The tax as a percentage of income remains constant as income increases; also called a flat tax.

Regressive Taxation

The tax as a percentage of income decreases as income increases.