GST Paid by a Business on the Purchase of Its

question 27

Multiple Choice

GST paid by a business on the purchase of its goods and services, and for which a reduction of GST collected will be claimed from the tax department, is stored in an account called:

• A) GST holdings.
• B) GST collections.
• C) creditable acquisitions.
• D) input credits GST outlays.

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Definitions:

Cost Per Unit

Cost per unit is the total expense incurred to create or purchase a unit of product, calculated by dividing total costs by the number of units produced or purchased.

Fixed Factory Overhead

Costs related to the production that do not vary with the level of output, such as rent, salaries of permanent staff, and depreciation.

Variable Direct Labor

The portion of labor costs that varies directly with production volume.

Desired Profit

The profit amount that a company aims to earn in a specific period, typically set as a goal in financial planning.