Sam's Semiconductors Produces Computer Chips,which It Sells for $10 Million

question 1

Multiple Choice

Sam's Semiconductors produces computer chips,which it sells for $10 million to Carl's Computer Company (CCC) .CCC's computers are sold for a total of $16 million.What is the value added of CCC?

• A)$6 million
• B)$10 million
• C)$16 million
• D)$26 million

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Definitions:

Manufacturer

Business that makes a product and sells it to its customers.

Accounting Organization

An entity or structured group that sets accounting standards, rules, and provides guidance for accounting practices and procedures.

Corporation

A legal entity distinct from its owners, possessing rights to own property, incur debts, sue and be sued.

Partnership

A legitimate business structure involving two or more people who jointly manage and benefit from the profits.