When you are making a financial decision,the most relevant tax rate is the _____ rate.
A)average
B)non-current
C)marginal
D)total
E)variable

Question

Quizplus · Accepted Answer

The marginal tax rate is the relevant tax rate when making financial decisions because it refers to the percentage of tax that will be applied to the next dollar of income earned or the next dollar of deduction lost. This is important as it helps to determine the true cost or benefit of a financial decision. The average tax rate, non-current tax rate, total tax rate, and variable tax rate may also be useful in some contexts, but they do not offer the same level of precision as the marginal tax rate.

When You Are Making a Financial Decision,the Most Relevant Tax