45-When the cost incurred on recruiting, training and developing employees is considered for determining the value of employees, it is called as

a.

The value benefit approach

b.

The opportunity cost approach

c.

The replacement cost approach

d.

The historical cost approach

44-Muscat refineries has 20 skilled employees and 15 unskilled employees. The average annual earnings of the employee till the age of retirement is RO 10,000 for the skilled employees and RO 8000 for unskilled employees. The discount rate applicable for this company is 15%. The age of retirement for skilled and unskilled employees is 65 years. The average current age is of skilled employees is 62 years and unskilled employees is 61 years. The total value of human resource of company according to Lev and Schwartz model is (The discount rate at 15% for four years is 0.869, 0.756, 0.657, 0.571)

a.

None of the options are right

b.

RO 45,6440 and RO 423,540

c.

RO 45,920 and RO 426,340

d.

RO 456,400 and RO 342,360

43-Sun Shine corporations has a capital of RO 200,000 and the net profit of the year is RO 20,000. The Return on Investment of the similar company in the market is 12.5%. If the company appoints Mr. Hafedh as a production head, it is expected that the profits will increase by RO 3000 over and above the target profit. The maximum bid price for Mr. Hafedh and the maximum salary that could be offered to him is:

a.

None of the options are correct

b.

RO 80,000 and RO 8000

c.

RO 88,000 and RO 11,000

d.

RO 64,000 and RO 8,000