Question

Ownership costs are incurred after the initial purchase and are associated with the ongoinguse of the product or material. Which of the following is not an ownership cost listed in the text? A. Financing costsB. Energy costsC.TaxesD. AestheticsE. Worker fatigue

Answer 1

Answer:

C, Taxes

Explanation:

Tax is the financial levy or charge imposed on an individual by the government to fund its expenditure.

When a product is purchased, the ownership cost of the product does not include tax because a product is not taxable. The income from the product is taxable but not the product itself.

So when purchasing a product, asides from value added taxes which has been included in the product price, there is no continuous tax payment on the product after its been paid for.

Cheers.