| dc.description.abstract | The concept Margnal Cost Pricing (MCP) is particularly relevant when
used inthe environment of State-owned Enterprises, especially for
companies engaged in the field of community serviceand has strategic
position in national economic growth. Pricing controlled by the
government and the House of Representatives is considere dessential in
order to preserve the stability of the business, avoid inflation and
unemployment. Therefore it is important for the ministry of state
enterprises to study the application of MCP concept, since relevant
research results have shown that the this concept has been widely used by
developed countries such as American and European countries,
especially in determining the electricity rates, train fare, bus fare, ships
fare, and publicutility rates provided by the government. In an
environmentof State-owned Enterprises there were none research result
that led to the implementation of this concept due to the following
difficulties: (a) the mechanism that is influenced by political
considerations, (b) consideration of qualitative decision-makers with out
using a quantitative basis, (c) lack of dissemination of this concept and its
nation-wide applicationis very limited,(d) there has been no
comprehensive studies in the environment of state-owned enterprises
related to the application of this concept, (d) in adequate financial
statementsor unadjusted yet since the accounting information is not
realistic because of historical based reports, and others. Technically, the
application of the MCP concept in the environment of state-owned
enterprises can be done, however the willingness and commitment of
stake holders are very required.This is where therole of corporate
management in the environment of state-owned enterprises or the
ministry of state-owned enterprises as share holders as well as annual
general meeting board initiatesteps that begins with the study to convince
the feasibility and benefits of the MCP implementation. The benefits are
especially in improving the performance of related state-owned
enterprises, reducing the burden of subsidies, and improving public
services. Furthermore, this paper is expected to inspire the decision
makers in the environment of state-owned enterprises such as state | en_US |
