Which of the Following Statements Is NOT True About Corporate

question 39

Multiple Choice

Which of the following statements is NOT true about corporate income tax rates and economic activity?

• A) The income tax is the primary sources of revenues for national governments around the world.
• B) Before the Great Depression,state and local government expenditures in the U.S.were much lower than federal expenditures.
• C) When state corporate income tax rates are added to federal rates,Japan has the highest combined corporate income tax rate among OECD countries.
• D) The great majority of U.S.government expenditures are on nondefense items such as health,economic support,and education.
• E) From 2005-2008,the average gross savings rate of OECD countries increased.

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Definitions:

Raw Materials Inventory

The stock of primary materials used in the manufacturing process before they are converted into finished goods.

Factory Labor

The direct and indirect labor costs incurred in manufacturing products, including wages and benefits of workers involved in production.

Total Manufacturing Costs

Sum of all costs directly involved in the manufacturing of a product, including raw materials, labor, and overhead expenses.

Direct Materials Used

The raw materials directly traced to the manufacturing of a product and included in its cost.