Answer:
No option is correct.
- a. An increase in the tax rate always increases tax revenue. ⇒ FALSE, if tax rates increase beyond the optimal level, instead of increasing total revenue they will decrease it.
- b. The tax rate is 1 percent, and tax revenue is very high. ⇒ FALSE, very low tax rates will result in very low government revenue.
- c. The tax rate is 99 percent, and tax revenue is very high. ⇒ FALSE, very high tax rates will result in very low government revenue.
- d. A decrease in the tax rate always increases tax revenue. ⇒ FALSE, if tax rates decrease beyond the optimal level, instead of increasing total revenue they will decrease it.
Explanation:
According to Arthur Laffer, a direct and sometimes inverse relationship exists between tax rates and government revenue. Sometimes a lower tax rate can result in higher government revenue. But that is not always the case. Sometimes an increase in the tax rate can increase government revenue. The optimal tax rate (T*) is equal to the tax rate that will allow the government to collect the highest amount of revenue. Any lower or higher tax rate will decrease government revenue.
Answer:
B.
Explanation:
Management accounting is the provision of financial data and suggestions to a company that it can use for the development of its business.
It improves the performance of the control functions of the company.
It also helps in maintaining internal financial reports by providing information regarding business costs and operations.
Management accounting is considered most likely to be successful when it <u>is timely</u>
Option B is correct.
Answer:
true
Explanation:
businesses need products and services too
Answer:
50,000
Explanation:
(300,000-50,000)/1,000x200,000=50,000
Answer: $466 Unfavorable
Explanation:
The Controllable variance is found by the formula:
= Flexible budget overhead - Actual Overhead incurred
= 10,640 - 11,106
= -$466
As this is a negative, it is an Unfavorable variance because it shows that actual overhead was higher than planned.