Economics

Supply and Law of Supply

Supply Supply can be defined as the ‘quantity of a good which a seller is willing and able to sell at a particular price in a particular period of time’. Factors influencing supply Price of commodity cost of production Change in Technology Availability of transportation facility Government policy Price of Read more…

By Anagha Sanil, ago
Economics

Demand and Law of demand

Demand Estimating Demand is central to any business operation because first it should estimate or forecast demand in order to detrmine there budget, production etc. Demand can be defined as the amount of a good that a consumer is willing to buy and able to purchase at a period of Read more…

By Anagha Sanil, ago
Economics

Macroeconomics and Microeconomics

Macroeconomics The word Macro Economics derived from the Greek word ” Macros” which means large. Macroeconomics do ‘big picture’ or ‘aggregate’ study on the behavior and performance of an economy as a whole. Thus the focus is on the aggregate changes in the economy such as unemployment, growth rate, gross Read more…

By Anagha Sanil, ago
Cost Accounting

Classification of cost

 Costing can be calssified based on: By nature or elements (materials, labour and overheads) By time (historical, pre-determined) By traceability to the product (direct, indirect) By association with the product (product, period) By changes in activity or volume (fixed, variable, semi-variable) By function (manufacturing, administrative, selling, research           and development, Read more…

By Anagha Sanil, ago
Cost Accounting

Utility of cost accounting

 A properly installed cost accounting system will help the management in the following ways: The analysis of profitability of individual products, services or jobs. The analysis of profitability of different departments or operations. It locates differences between actual results and expected results. It will assist in setting the prices so Read more…

By Anagha Sanil, ago
Cost Accounting

Cost Accounting

Cost Accounting was basically a 20th-century creation, to make up the deficiencies of financial accounts. Cost accounting accounts for the costs of a product, a service or an operation. It is concerned with the actual costs incurred and the estimation of future costs. Cost accounting is a procedure whereby costs Read more…

By Anagha Sanil, ago