After reading this article you will learn about:- 1. Elements of Cost 2. Nature of Cost 3. Types. Elements of Cost: The costs of an industrial enterprise may be divided into three principle elements, namely: 1. Material. 2. Labour. 3. Expense. 1. Material Cost: It is the cost of commodities supplied to an undertaking. It is of two types: (a) [...]
In this article we will discuss about the internal and external source of finance for Industries. Internal Source of Finance: 1. Retained Equity Earnings: This implies retaining the earnings of the shareholders for internal reinvestment. Every rupee retained is a rupee with-held from distribution to existing shareholders. While doing so, management must do something to maintain the interest of shareholders. [...]
Steps involved in one Complete purchasing cycle are:- 1. Recognition of Need, Receipt and Analysis of Purchase Requisition. 2. Selection of Possible Potential Sources of Supply. 3. Making Request for Quotation. 4. Receipt and Analysis of Quotations. 5. Selection of Right Source of Supply. 6. Issuing the Purchase Order. 7. Follow-Up and Expediting the Order and Others. Step # 1. [...]