Which of these is an example of indirect tax?
Sales tax, value-added tax, excise tax, and customs duties are examples of indirect taxes.
Which tax is an indirect tax a corporate income tax b federal income tax C Property Tax D sales tax?
Answer Expert Verified. Indirect tax is D. Sales tax. Sales tax is the taxes that is charge or added to the items sold in the markets like hygiene, medicines, water, juices and drink and more.
What is the difference between indirect tax and direct tax?
While direct taxes are imposed on income and profits, indirect taxes are levied on goods and services. A major difference between direct and indirect tax is the fact that while direct tax is directly paid to the government, there is generally an intermediary for collecting indirect taxes from the end-consumer.
What is not a direct tax?
Indirect taxes are those applied on the manufacture or sale of goods and services. These are initially paid to the government by an intermediary, who then adds the amount of tax paid to value of the goods / services and passes on the total amount to the end user. Examples : Sales tax, service tax, excise duty.
What is the difference between direct expenses and indirect expenses?
Direct Expenses: Direct expenses are those expenses that are paid only for the business part of your home. Indirect Expenses: Indirect Expenses are those expenses that are paid for keeping up and running your entire home. Examples of indirect expenses generally include insurance, utilities, and general home repairs.
Is Rent a direct expense?
Other costs that are not direct costs include rent, production salaries, maintenance costs, insurance, depreciation, interest, and all types of utilities.
What are the direct income in accounts?
Direct income is one which is earned directly by way of business activities. Indirect income is one which is earned by way of non-business activities. For example, sale of old newspapers, sale of carton boxes, etc.
Are all indirect costs fixed?
Much like direct costs, indirect costs can be both fixed and variable. Fixed indirect costs include things like rent. Variable costs include the fluctuating costs of electricity and gas.
Are overhead and indirect costs the same?
Overhead expenses are the other portion of indirect costs and relate to projects, but not to just one. If you have no projects, then you have no overhead. Overhead supports the direct costs of the revenue generating projects of the company.
What is overhead cost example?
Overhead expenses are all costs on the income statement except for direct labor, direct materials, and direct expenses. Overhead expenses include accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.
How do you calculate overhead?
The overhead rate or the overhead percentage is the amount your business spends on making a product or providing services to its customers. To calculate the overhead rate, divide the indirect costs by the direct costs and multiply by 100.
Are salaries overhead costs?
Overhead costs can include fixed monthly and annual expenses such as rent, salaries and insurance or variable costs such as advertising expenses that can vary month-on-month based on the level of business activity.
What is the difference between overhead and operating expenses?
Operating expenses are the result of a business’s normal operations, such as materials, labor, and machinery involved in production. Overhead expenses are what it costs to run the business, including rent, insurance, and utilities.
What type of cost is supervisor salary?
DThe salary is part fixed ($650/month) and part variable (5 pence/unit). Therefore it is a semi-variable cost. 5. D The cost described will increase in steps, remaining fixed at each step until another supervisor is required.
Why salary is fixed cost?
Fixed costs that may be directly associated with production will vary by company but can include costs like direct labor and rent. Another primary fixed, indirect cost is salaries for management. Companies will also have interest payments as fixed costs which are a factor for net income.