Which of the Following Is the Primary Purpose of Preparing

question 11

Multiple Choice

Which of the following is the primary purpose of preparing a statement of added value?

• A) To show the value added to products while at production
• B) To show the distribution of added value by the company among shareholders
• C) To calculate the net taxable income of the company
• D) To show the costs in addition to gross payroll that the company incurs related to its labor force

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive due to market prices.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, usually measured at points above the supply curve.

Tax

A mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund various public expenditures.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus what they actually pay.