Does a Tax on Sellers Affect the Demand Curve

question 88

Multiple Choice

Does a tax on sellers affect the demand curve?

• A) Yes, it shifts to the left by the amount of the tax.
• B) Yes, it shifts to the right by the amount of the tax.
• C) Yes, it shifts up by the amount of the tax.
• D) No, there is change in the quantity demanded, but the demand curve does not move.

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Definitions:

Job Costing System

A cost accounting system that tracks the expenses of a specific job against its revenue to determine profitability.

Overapplied Overhead

This occurs when the allocated manufacturing overhead cost is more than the actual overhead costs incurred, leading to a variance.

Underapplied Overhead

The situation where the allocated overhead costs are less than the actual overhead incurred.

Proration

The method of allocating proportions of expenses or incomes across different departments, products, or periods.