Besides Raising Revenue, Which of the Following Is an Additional

question 26

Multiple Choice

Besides raising revenue, which of the following is an additional goal of excise taxes?

• A) to encourage shoppers to buy products in-state
• B) to reduce the need to collect personal income taxes
• C) to preserve a scarce product
• D) to promote competition among industries
• E) to decrease consumption of a product

---

Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, remaining constant within a specific range of activity.

Contribution Margin

The difference between a company's sales revenue and its variable costs.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment or operation.

Net Operating Income

A company's income after all operating expenses are deducted but before interest and taxes are accounted for.