Which of the Following Is True About Privatization

question 46

Multiple Choice

Which of the following is true about privatization?

• A) Privatizing public schools would increase the political influence in the education system.
• B) Private incentives distort costs and benefits hence reduce efficiency.
• C) Privatization would introduce market incentives into the U.S. educational system.
• D) Privatization would not introduce market incentives into the U.S. educational system.

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Definitions:

Budgeted Purchases

Budgeted purchases represent the projected buying activities of a business, detailing the amount of inventory needed to meet sales forecasts and maintain stock levels.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Raw Materials Inventory

The cost of the materials that are to be used in production and are currently stored within a company.

Budgeted Purchases Cost

Refers to the estimated expense for acquiring goods over a specific period, often used in planning and controlling inventory levels.