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LAW OF VARIABLE PROPORTIONS Law of Variable Proportions states that the use of more and more units of variable factor of production along with specific number of units of fixed factor results in changes in total product in variable proportions. ACCORDING TO LEFTWITCH “The law of variable proportions states that if the input of one…
SHORT RUN VS LONG RUN Production Function: SHORT PERIOD PRODUCTION FUNCTIONS: The time period in which some factors of production are fixed while some factors of production are variable, is known as short period. It explains the technical relationship between outputs and inputs in the short run. The fixed factor is land and the variable…
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MEANING Production Function expresses the functional relationship between output of a commodity and various inputs used in to produce that commodity. It can be expressed as: Q= f (L,K) It means the output is the function of a fixed factor ‘Land (L)’ and a variable factor ‘Capital (K)’. ACCORDING TO KOUTSOYIANNIS “The production function is…
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PRICE ELASTICITY OF DEMAND Price Elasticity of demand is the rate at which quantity purchased changes with the change in price. It is the ratio of percentage change in quantity demanded to percentage change in the price of the commodity, other Factors affecting Price Elasticity of Demand remaining the same. Ed= (-) Percentage change in quantity demanded/…
Before understanding the difference between Law of Demand vs Elasticity of Demand, both concepts should be clear: LAW OF DEMAND Law of demand explains the relationship between price of the commodity and its demand. The law states that there is inverse or negative relationship between the demand and price of the commodity, ceteris paribus i.e….
BENEFITS OF IFRS IFRS stands for International Financial reporting Standards. These are the standards issued by the International Accounting Standard Board. It also covers the wide range of International Accounting Standards issued by the International Accounting Standard Committee. IFRS has replaced the GAAP (Generally Accepted Accounting Principles). These standards are to be used by the…
IFRS IFRS stands for International Financial reporting Standards. These are the standards issued by the International Accounting Standard Board. It also covers the wide range of International Accounting Standards issued by the International Accounting Standard Committee. IFRS has replaced the GAAP (Generally Accepted Accounting Principles). These standards are to be used by the business organisations…
Difference between double and single entry system Before understanding the difference between Double & Single entry System, both concepts should be understood: SINGLE ENTRY SYSTEM Single Entry System in accounting is a system in which the proprietors or the firms do not follow specific rules of double entry system to maintain accounts. It is an Incomplete Record…
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DOUBLE ENTRY SYSTEM OF ACCOUNTING Double Entry System of Accounting is a system under which each transaction is regarded to have two-fold aspects and both the aspects are recorded to obtain the complete record of dealings. It is based on the rule that debit should be equal to the credit. Luca Friar Pacioli is known…
Before understanding the Difference between Public and Private Company, we should understand the both concepts. PUBLIC COMPANY Public Company is the company which can be incorporated with zero paid up capital as per the Companies Act (Amendment), 2015.This is the company which can start its business with minimum 7 members. Public company has to get…