Assume That a Product Has the Following Three Stages of Production

question 60

Multiple Choice

Assume that a product has the following three stages of production: $$\begin{array} { c l } \text { Production } & \text { Selling } \\\text { Stage } & \text { Price } \\\hline 1 & € 100 \\2 & € 250 \\3 & € 1,500\end{array}$$ If the value-added tax (VAT) rate is 15%,what would be the VAT over all stages of production?

• A)€ 90
• B)€120
• C)€465
• D)€225

---

Definitions:

Inventory Records

Documents that track the quantity, value, and movement of products or materials a company holds in stock.

FOB Shipping Point

A shipping term indicating that the buyer assumes all risk and pays for shipping costs from the point of departure; ownership of goods transfers to the buyer when the carrier picks up the items.

FOB Destination

is a shipping term indicating the seller bears delivery risk and costs until the goods reach the buyer's location, at which point the buyer takes over.

Title

A legal term referring to the formal right of ownership of property, assets, or a company.