Which of the Following Statements About the Privatization and Marketization

question 3

Multiple Choice

Which of the following statements about the privatization and marketization of countries transitioning from communism is accurate?

• A)Those advocating shock therapy wanted to minimize the short-term social disruptions of marketization.
• B)Inflation and hyperinflation were fears of those that advocated a gradual approach to marketization.
• C)Many companies were uncompetitive in the international system, but large industrial firms seemed to be best at surviving privatization.
• D)Postcommunist countries almost universally sought to privatize by distributing firms' shares to the public as a whole.
• E)Most postcommunist countries agreed that privatization should occur and be allowed to complete its course before marketization was attempted.

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Definitions:

Direct Labor

The workforce directly involved in producing goods or delivering services, whose wages are considered part of manufacturing costs.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to, utilities, depreciation, and salaries of non-direct labor.

Inventoriable Costs

Direct costs associated with the acquisition or production of goods that are capitalized as inventory and recognized as cost of goods sold when the inventory is sold.

Matching Principle

A fundamental accounting concept that requires expenses to be recorded in the same period as the revenues they helped generate.