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3 years ago

Which one of the following is a claimed disadvantage of privatisation?

Business

1 answer:

Serga [27]3 years ago

8 0

Answer:

3. There will be less competition than when the industry was nationalized monopoly

Explanation:

Privatization transfers ownership of state-owned corporations or properties from the government to the private sector. The transfer is through the sale of government-held shares to another company or the general public.

Since state-owned enterprises are large corporations, privatization creates the possibility of forming private monopolies. The private monopolies are likely to dominate the market and stifle out the competition. They are also likely to increase prices as private business is profit-motivated, which is detrimental to consumers.

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Management is considering using a new component that would increase the unit variable cost by $50. Since the new component would

katrin [286]

Answer:

Because fixed costs will not change, the overall effect on the company's monthly net operating income will be equal to the contribution margin of the product once the new component is added.

Explanation:

The contribution margin is equal to: Revenue - Variable Costs.

We already know that the variable cost will be increased by $50 once new component is added, and that monthly sales are expected to increase by 500 units after that.

Depending on the price of the product, the amount sold, and the variable costs, we get the contribution margin, and this contribution margin will be exactly the same as the overall effect on the net operating income.

7 0

3 years ago

The upper-level managers of Premium Java are meeting to discuss the company's long-range goals and vision. Like any organization

adell [148]

Answer:

The answer is False

Explanation:

The upper-level managers of Premium Java should do it for three reasons:

1. To provide direction and momentum - Delivering company's long-range goals and vision to the employees is the responsibility of the leadership.

2. To encourage retention of high-value employees - Once the employees understand the goals and vision of the company, this will enable the organisation to gain commitment of the employees, thus reduced employees' turnover will be faced.

3. To develop a sustainable competitive advantage - organisation will be able to attain a sustainable competitive advantage, as a result of the above two.

4 0

3 years ago

In this type of budget, the master budget is based on a single prediction for sales volume, and the budgeted amount for each cos

SOVA2 [1]

Answer:

Fixed budget.

Explanation:

A fixed budget can be regarded as financial plan which is not been modified for any variations that could come up in actual activity. In most times some companies may have experience of substantial variations as regards their expected activity levels within the encompassed period of budget as well as the amounts in that budget. The budget cost allowances in a fixed budget for each cost item cannot be changed as regards the variable items. It should be noted that in Fixed budget the master budget is based on a single prediction for sales volume, and the budgeted amount for each cost essentially assumes that a specific amount of sales will occur.

3 0

3 years ago

On January 1, 2017, Sage Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in

slavikrds [6]

Answer:

January 1, 2017

Debit: Accounts Receivable $2800

Credit: Deferred Revenue[Wiring Base] - $1120

Credit: Deferred Revenue[Shelving Unit] - $1680

Narration: Contract Detail and invoicing of the client.

February 5, 2017

Debit Deferred Revenue[Wiring Base] - $1120

Credit Revenue Account - [Wiring Base] - $1120

Narration: Revenue recognition of Wiring Base delivered to customer

February 25, 2017

Debit Deferred Revenue[Shelving Unit]- $1680

Credit Revenue Account - [Shelving Unit] - $1680

Narration: Revenue recognition of Shelf delivered to customer

February 25, 2017

Debit: Bank - $2800

Credit: Accounts Receivable - $2800

Narration: Payment received in settlement of contract fully delivered

Explanation:

The question is an example of a Performance Contract.

A Performance Contract is an agreement with a customer by a vendor to discharge a service or provide goods that are distinct from each other. The accounting for this obligations will therefore be recorded and recognized separately.

It is also important to note that the services or goods must be separately identifiable and the customer must be able to derive from each goods on individually or jointly.

The rule is to

Recognize the contract and invoice amount with the customer as Deferred Income.
Identify the distinct obligations and services to be provided.
Identify the transaction amount for each service or good.
As each obligation is met, the revenue is finally recognized and transferred from Deferred income.

3 0

3 years ago

Sinclair Manufacturing Company experienced the following accounting events during its first year of operation. With the exceptio

matrenka [14]

Answer:

Please see the attached image for the Horizontal Financial Statements of Sinclair Manufacturing Company.

Explanation:

5. FURNITURE - Straight Line Method

Book Value of Furniture = Cost of Acquisition - Residual Value

Cost of Acquisition = $9,600

Residual Value = $1,600

Book Value of Furniture = $9,600 - $1,600

Book Value of Furniture = $8,000

Useful Life = 4 years

Depreciation Expense = $8,000 / 4 years

Depreciation Expense = $2,000 per year

6. EQUIPMENT - Straight Line Method

Book Value of Equipment = Cost of Acquisition - Residual Value

Cost of Acquisition = $16,000

Residual Value = $1,000

Book Value of Furniture = $16,000 - $1,000

Book Value of Furniture = $15,000

Useful Life = 5 years

Depreciation Expense = $15,000 / 5 years

Depreciation Expense = $3,000 per year

6 0

3 years ago