Inventory valuation : Inventory valuation : Inventories should be generally valued at the lower of cost or net realizable value. What is inventory valuation? Inventories should be generally valued at the lower of cost or net realizable value. This principal…
Inventory is also known as ‘stock’, refers to physical goods and materials that business owns with a view of future resale. And it is very important asset for any company. Further, inventory can be defined as asset held The inventories…
Theory of price defines the term optimum price as that price which yields the maximum profits. What is theory of price? The basic approach in most of the micro-economic theory (i.e. theory of the individual firm and its relation to…
Monopolistic Competition is one in which there are large number of firms producing similar but not identical products. What is Monopoly? Monopoly is a market condition where there is only one supplier or producer of a homogenous product for which…
Under perfect competition market, there are large numbers of sellers selling a homogeneous product using identical production process. And all of them have perfect information about the market and price. What is prefect competition? Under perfect competition market, there are…
Like other source of fund, retained earning also involves cost. Cost of retained earnings is the opportunity cost of dividends foregone by shareholders. The amount of undistributed profit which is available for investment is called retained earnings. Further, If the…
Foreign currency convertible bond is a type of convertible bond issued in a currency different than the issuer’s domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. Further,…
Element of cost means the grouping of costs according to their common characteristics. Further, cost is the amount of resource given up in exchange of some goods or services. It is defined as the amount of expenditure (actual or notional)…
The Prime Minister , Shri Narendra Modi inaugurated the Surat diamond bourse in Surat Gujrat. The new diamond has been added to the glory of Surat. Further, This will be the world’s biggest and latest center for international diamond and…
Risk arises where there is a probability of variation between expectations and realizations with regard to an investment. Hence, it is arises from the variability in returns. An investment whose returns are fairly stable is considered to be low-risk investment.…