An Organization Has Recorded the Following Profit and Expenses: Profit

question 110

Multiple Choice

An organization has recorded the following profit and expenses: Profit before interest and tax $200,000 Sales $2,300,000 Purchases of materials $700,000 Interest expenses $30,000 If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT that the organization has to pay?

• A) $34,000
• B) $51,000
• C) $60,000
• D) $320,000

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Definitions:

Operations Management

The field of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Employment Agencies

Employment agencies are organizations that match employers looking to hire with individuals seeking employment, facilitating job placements across various industries.

Professional Organizations

Groups or associations that are formed to advance a specific profession and to serve the interests of its members.

ISM

Institute for Supply Management; an organization that produces research and standards in the field of supply management.