Chester Ltd Company

 

Chester Ltd purchased a new machine for £2,000 on 1 January 2019. At that time, the company believed that its useful economic life would be 10 years, with no residual value.

On 1 January 2021, Chester Ltd changes its estimations. The company now believes that the machine will be used for a further 10 years after which time it will have a second-hand value of £200.

What is the depreciation charge for the year ending 31 December 2021?

Sample Solution

From the perspective of the employees, the training process is beneficial as it allows employees to refresh existing skills and more importantly learn new competencies and knowledge (Baldwin-Evans 2004). Primarily, training helps employees improve skills and knowledge that are necessary for personal as well as professional growth. By maximizing training opportunities, employees tend to become more competitive and competent, which helps in increasing the market value. It would be important to consider that training helps employees develop new competencies and expertise, which are determinants of market value, as well as compensation and other incentives. In essence, highly competent workforces expect higher salaries or compensation, as this kind of workers are highly demanded.

Recruitment and selection and training are organizational processes that could benefit not only the organization but also the workforces. The recruitment process for instance benefits the organization given that the process helps in attracting the best talents in the market. On the other hand, the recruitment process also benefit the workforces, given that recruitment initiatives serve as the portal through which applicants gain access to the organization of their choice. With regards to the selection process, organizations benefit from the process, as selection techniques and approaches allow organizations to hire only the best talents. Similarly, workforces benefit from the selection process, as it provides a systematic and structural means of selecting the best candidate without bias and prejudice. As for the training process, organizations benefit from the process, as effective training programs and approaches guarantee that organization’s workforces are equipped with the appropriate knowledge and information to efficiently perform their tasks. It should be noted also that trained and efficient workforces tend to produce better results than workforces that have not undergone training. Training also benefits employees as training programs provide a way for skill and knowledge enhancement, which are vital for personal and professional growth. Furthermore, training helps employees become more competitive and competent, which are determinants of market value as well as compensation and incentives.

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