QUESTIONS 1.
Provide the term for the following statements:
1.1
Businesses do not maximise output from the given inputs.
1.2
When businesses produce goods and services that consumers do not want.
(1)
(1)
2.
What is the effect on the market when suppliers under invest in their businesses?
(2)
3.
Why is price discrimination not possible under perfect market conditions?
(2)
4.
What are the consequences of negative externalities on society?
(2)
5.
Briefly describe the term rent seeking.
(2)
6.
Why is rent seeking bad for the economy?
(2)
7. How can an oligopoly cause market failure?
(8)
8.
Explain by means of a graph how government can intervene in the market using subsidies
as a means to increase output.
(10)
9.
Do research on Denel. Can Denel be regarded as a monopoly in South Africa?
(20)​

Which of the following statements is true regarding the definition of a fund? a fund is a fiscal entity which is designed to provide reporting that demonstrates conformance with finance-related legal and contractual provisions separately from gaap reporting. a fund exists to assist in carrying on activities and attaining objectives where there are no specific rules or restrictions. a fund is an accounting entity which is designed to enable reporting in conformity with gaap without being restricted by legal or contractual provisions. a fund is a mechanism developed to provide accounting for revenues and expenditures that are subject to certain restrictions separate from revenues and expenditures that are not subject to restrictions.

Amachine purchased three years ago for $720,000 has a current book value using straight-line depreciation of $400,000: its operating expenses are $60,000 per year. a replacement machine would cost $480,000, have a useful life of nine years, and would require $26,000 per year in operating expenses. it has an expected salvage value of $130,000 after nine years. the current disposal value of the old machine is $170,000: if it is kept 9 more years, its residual value would be $20,000. calculate the total costs in keeping the old machine and purchase a new machine. should the old machine be replaced?

Which of the following differentiates cost accounting and financial accounting? a. the primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. b. cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. c. cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. d. cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.