alleryStart learning →How do property taxes on a factory vary with sales or profit?
ARise in step with sales
BStay fixed as sales vary
CFall as profit rises
DDouble every year
Answer & Solution
Correct answer: B. Stay fixed as sales vary
These taxes do not change with profits or sales unless the government changes them.
Keep practising Total Absorption Costing
Browse all Total Absorption Costing questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
In the CIMA description of ABC, activities are assigned to what?In which journal did Cooper and Kaplan publish ABC articles from 1988?Drucker said ABC also records the cost of what?What limits the use of ABC, especially in services?What is a danger of ABC, like other cost allocation approaches?The chief executive's salary stays unassigned in ABC. What are such costs termed?Why did indirect costs rise relative to direct costs in modern factories?How does ABC assign costs, rather than using broad arbitrary percentages?