In a firm that undertakes manufacturing activity, the inflow and outflow of material occur at frequent intervals. As production can take place only when there is sufficient material. In this way, the need for material emerges every now and then. With the help of purchase requisition, permission to purchase the material is sought by various departments. Further, the placement of an order for buying the material takes place on the approval of purchase requisition. It is the purchasing … [Read more...]

In segmentation, the entire market of consumers is broken down into a number of groups. These groups are segments that comprise consumers with similar characteristics. Of all these segments the company chooses one segment to focus on, to offer their products. This is the process of targeting. We all know that, when all the consumers of the product are taken together, it makes up the market for that product. But this is also true all the consumers are not the same. Therefore, the consumers may … [Read more...]

Supply implies the quantity of a commodity, which suppliers are ready to offer for sale at a definite price over a period of time. In other words, supply is what the supplier is able and willing to offer for sale to the customers. In contrast, quantity supplied implies the amount of a particular commodity that the firm is willing and able to make available for sale at the given price at the given period of time. The seller of the product represents the supply side of the commodity. This may … [Read more...]

Notice and circulars are used as a form of written communication, to give or exchange information with the staff. Notices are commonly found on a notice board, specially meant to bring attention to the people who pass by. On the other hand, Circulars are the tool of internal communication that is used to convey the message to various addressees within the organization. It is brief and formal. The notice covers the information which we want to be noticed (paid attention to) by a maximum number … [Read more...]

APC and MPC are two concepts in economics, which sound similar. However, while average propensity to consume (APC) can be described as the fraction of aggregate consumption to aggregate income, marginal propensity to consume (MPC) is the fraction of change in the consumption expenses, to income. What is Propensity to Consume? Propensity is the inclination towards something that drives your behavior in a definite manner. So propensity to consume is the drive to consume corresponding to income. … [Read more...]

Collection of data is the first step in the field of research and once the collection process is complete the next step is to look for ways to condense and arrange the data, to study their characteristics. This process is known as the presentation of data. Data in its original form which the researcher first collects from research is termed ungrouped data. In simple words, ungrouped data or raw data is a mere list of numbers that does not convey anything. This is because no summarization or … [Read more...]

Allowance refers to the financial benefit which an employer provides to employees in addition to the basic salary they draw, so as to meet the expenses that employees may incur to perform the job or because of it. Conversely, perquisites refer to a financial benefit which an employer provides to an employee because of their job or the designation they hold. These are like add ons to an employee's compensation. It facilitates the management of a number of expenses for which the employee does … [Read more...]

Management Audit refers to an independent examination of the managerial activities undertaken at different levels of the management so as to determine its functions, efficiency and achievement. On the other hand, Cost Audit refers to the process of authenticating the cost of production, based on the accounts, concerning the use of material, labour and overheads, which a company maintains. What does the word 'Independent' mean in Auditing? 'Independent' means the opinion which an auditor … [Read more...]