Question

It is argued by some researchers that even in the absence of regulation, organisations will have an incentive to provide credible information about their operations and performance to certain parties outside the organisation; otherwise, the costs of the organisation’s operations will rise. What is the basis of this belief?

it is 10 marks question can please explain it with references.

Answer 1

Cost of the Operation Operating Expenses that the company occurs are the other than production of a product cost. These expenses are include like payroll, rent, office supplies, utilities, marketing, insurance and taxes. Operating expenses are essentially the costs to keep the business running. Controlling these expenses are very important aspect of managing healthy business. Operating expenses are found on the income statement. Every company will have different expenses based on their operations. A basic example of an operating expenses formula is below. Income Statement as on .. AMOUNT ( $ PARTICULARS 2,200,000.0 Sales Returns, Refunds, Discounts Total Net Revenue 2,200,000.0 Cost of Goods Sold 1,540,000.0 Contribution Margin 660,000.0 Expenses Advertising & Promotion 2,500.0 Depreciation & Amortization 2,000.0 Insurance 6,000.0 Maintenance 9,500.0 Office Supplies 5,200.0 Rent 40,000.0

Salaries, Benefits & Wages 75,000.0 Telecommunication 26,000.0 Travel 29,000.0 Utilities 1,400.0 Other administrative Expenses 217,000.0 Other financial Expenses 120,000.0 Misc. Expenses 6,400.0 Other Office Expenses 17,000.0 Total Operating Expenses 557,000.0 Earnings from Operation 103,000.0 Interest Expense Earnings Before Taxes 103,000.0 Income Taxes 18,540.0 Net Earnings 84,460.0 From the above statement Total Operating Expenses is 557,000. Benefit of outsourcing operations and performance to certain parties outside the organisation; Outsourcing is always as straightforward as it sounds if we need to find good talent and cultural fit to outsourcing team. It's true that outsourcing to reduce the costs, due diligence and find qualified Individuals Corporation fit to work.

If outsourcing is considered such a restricting a particular practice when cost is high, that is why companies continue to doing outsource the job. For starters, outsourcing can save companies a lot of money. The see the increasing profit margins companies can hire outsourcing employees to do the job for a lower cost. This is a design have in view in today's business world outsourcing benefit that effects each level of influence within an organization directly. They also managing the internal team make create a distance between employee and the manager/executive of the organization. Its now have a much modification process may save the additional process, resources time and money. Sometimes, there are special projects that require an outside perspective or expertise person that must be fulfill by the outsourcing person as per the situation.