Table 12-3 -Refer to Table 12-3. What Is the Average Tax Rate

question 504

Multiple Choice

Table 12-3
-Refer to Table 12-3. What is the average tax rate for a person who makes $60,000?

• A) 20%
• B) 30%
• C) 40%
• D) 50%

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Definitions:

Step-down Method

An accounting method used for allocating indirect costs to different departments based on a hierarchy where the first allocation base is the costliest department.

Personnel Department

The division of a business that is focused on activities relating to employees, such as hiring, training, and benefits administration.

Number Of Employees

The total count of individuals employed by a business or organization at a specific point in time.

Step-down Method

A method used in accounting to allocate service department costs to production departments in stages.