Assume That a Product Has the Following Three Stages of Production

question 58

Multiple Choice

Assume that a product has the following three stages of production: $$\begin{array} { c l } \begin{array} { c } \text { Production } \\\text { Stage }\end{array} & \begin{array} { c } \text { Selling } \\\text { Price }\end{array} \\\hline 1 & € 80 \\2 & € 160 \\3 & € 360\end{array}$$ If the value-added tax (VAT) rate is 10%,what would be the VAT over all stages of production?

• A)€64
• B)€36
• C)€465
• D)€225

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Definitions:

Administrative Cost

Expenses related to the general management and administration of a business, as opposed to production, marketing, or direct operations costs.

Administrative Costs

Expenses related to the general operation of a business that are not directly tied to a specific project or product.

Maintenance Department

A division within an organization responsible for the upkeep, repair, and smooth running of equipment and facilities.

Floor Space

The total area available for use within a building, often measured in square feet or square meters, important for planning and utilization.