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ikadub [295]
2 years ago
6

A local regulator has calculated the average cost of production for the public water utility. Theregulator has allowed an adjust

ment for the normal rate of profit the firm should expect to earn, and then set the price that consumers can be charged accordingly. In this instance, the regulator has used which of the following?
A. cost-plus regulation
B. cost-plus analysis
C. price-cap regulation
D. market-price analysis
Business
1 answer:
Varvara68 [4.7K]2 years ago
8 0

Answer:

A. cost-plus regulation

Explanation:

When a local regulator calculates the average cost of production for the public water utility or any other service and allow an adjustment for the normal rate of profit the firm should expect to earn, and then set the price that consumers can be charged accordingly, this is known as cost-plus regulation.

It is usually carried out by the government.

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The following information is taken from the income statement of Olympic, Inc.: Depreciation Expense $ 90,000 Amortization Expens
Lina20 [59]

Answer:

The correct option is D,$402,000.

Explanation:

In determining the cash flow provided by operating activities,we need to adjust the net income for effects of non cash items reported.It is important  to note that the reverse of the earlier treatment of the items is what is required now.For instance depreciation and amortization  were deducted in  income statement,for cash flow purposes we need to add both to net income.

Net income                          $315,000

add depreciation                $90,000

amortization                         $15,000

loss on sale of equipment  $9,000

less gain on sale of building($27000)

Cash flow from operations  $402,000

The cash flow from operating activities as adjusted is $402,000.

6 0
2 years ago
One company executive has expressed concern about the operating loss that has occurred in Product Line 2 and has suggested that
hoa [83]

Answer:

Increase

Explanation:

Operating income is a company's profit after deducting operating expenses which are the cost of running operations daily.

When the product line 2 is dropped cost of running operations will reduce thereby increasing the operating income.

3 0
2 years ago
Due to his reputation of putting together powerful presentations, Bennett was contractually hired by Robotic Life, Inc., to help
Alla [95]

Answer: Virtual organization

Explanation:

Virtual organization is referred to as or known as a permanent or temporary collection of the geographically dissipate individuals, organizational units, groups, or maybe the entire organization that tends to depend upon the electronic linking so as to complete production of the process. Virtual organizations do not tends to represent an organization's attribute but on the other hand is taken in consideration as a completely different organizational form.

4 0
2 years ago
Champagne, inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 m
Hoochie [10]

The free cash flow can be calculated as below:

Revenue 12000000

Less: Expense (8000000)

Less: Depreciation (1500000)

Earnings Before Tax 2500000

Less Tax (750000)

Earnings after tax 1750000

Add Depreciation 1500000

Total Cash Earnings 3250000

Less: Change in Working Capital (500000)

Less : Purchase of Asset (700000)

Free Cash Flow 2050000

Thus Free Cash Flow can be calculated as above.

4 0
2 years ago
People of lower socioeconomic status are more likely to smoke tobacco, but the data collected does not indicate why. However, wi
Stells [14]

Answer:

Option A "Qualitative" is the right option.

Explanation:

  • Qualitative approaches usually involve data analysis models and techniques from some kind of wide range of functional professional disciplines.
  • This same occurrence we were also willing to take part though is that smoker's behavior patterns with a relatively low socio-economic designation have been qualitative. Individual qualities as well as other qualities are indeed qualitative research.

And the above response is the appropriate one.

5 0
2 years ago
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