Study questions platform-wide or filter by specific tests with correct answers revealed.
Y Limited purchased a motor van with these costs: Purchase price $50,000; Delivery $4,500; Engine upgrade $6,000; 2-year maintenance contract $4,000; Annual licence fee $1,200. Depreciation: 20% straight-line. What are the total expenses in the statement of profit or loss?
Option B ($15,300) is correct.
Capital expenditure: $50,000 + $4,500 + $6,000 = $60,500
Depreciation = $60,500 × 20% = $12,100
Revenue expenditure: Maintenance (year 1 only) $4,000 ÷ 2 = $2,000 + Licence $1,200 = $3,200
Total expenses = $12,100 + $3,200 = $15,300
The transformation from tall to flat organizational structures primarily reflects efforts to:
Organizations are flattening (reducing management levels between CEO and production workers) in an effort to become more competitive. The traditional middle management role has been equated with cumbersome bureaucracy that prevents businesses from responding to market forces.
Sign in to join the conversation and share your thoughts.
Log In to Comment