CIMAPRA19-F01-1 Exam - Topic 2 Question 126 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 126
Topic #: 2

AA manufactures computers. These are sold to BB at $100 a computer plus a 5% sales tax. BB subsequently sells the computers to CC for $200 a computer plus a 5% sales tax. C sells the computers to customers at $300 a computer plus a 5% sales tax.

The total tax received by the tax authority is $30.

Which type of tax is described above?

ASingle-stage sales tax

BValue added tax

CRetail tax

DMulti-stage cumulative sales tax

Show Suggested Answer

Suggested Answer: D

by Eun at May 15, 2026, 10:53 AM

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Margo

16 days ago

I think this might be a value added tax since it seems to be applied at each stage of the sale.

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