Tomba Civil Engineers' Manager Is Attempting to Calculate Its Cost

question 7

Multiple Choice

Tomba Civil Engineers' manager is attempting to calculate its cost of providing services to clients.Its profit before taxes for January is $4,000, and it's selling and administration costs are $8,000, service revenue is $20,000.How much is its cost of providing service?

• A)$12,000
• B)$4,000
• C)$8,000
• D)$20,000

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Definitions:

Budget Surplus

A financial situation where a government's or organization's revenue exceeds its expenditures over a given period.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the true yield to lenders or investors.

Budget Surplus

The financial situation in which a government's revenues exceed its expenditures over a specified period of time.

Foreign-Currency Exchange

The process of exchanging one currency for another, enabling international trade and finance.