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:

Tax Revenue

Income earned by the government from taxing individuals and businesses.

Tax

An obligatory fiscal charge or another form of assessment applied to a taxpayer by a government body to finance government operations and diverse public expenses.

Deadweight Loss

Deadweight loss is an economic inefficiency that arises when a market outcome is not optimal, resulting in a loss of total surplus due to factors like taxes or monopolies.

Supply

The total amount of a product or service that is available for purchase at any given time.