FIXED AND VARIABLE COST

Fixed costs:

•  Fixed or constant costs are not a function of output; they do not vary with output upto a certain level of activity.
•  These costs require a fixed expenditure of funds irrespective of the level of output, e.g., rent, property taxes, interest on loans and depreciation when taken as a function of time and not of output. 
• However, these costs vary with the size of the plant and are a function of capacity. Therefore, fixed costs do not vary with the volume of output within a capacity level.
• Fixed costs cannot be avoided. These costs are fixed so long as operations are going on. They can be avoided only when the operations are completely closed down.
•  These are, by their very nature, inescapable or uncontrollable costs. But, there are some costs which will continue even after the operations are suspended, as for example, for storing of old machines which cannot be sold in the market. 
• These are called shut down costs. Some of the fixed costs such as costs of advertising, etc. are programmed fixed costs or discretionary expenses, because they depend upon the discretion of management whether to spend on these services or not.

Variable costs

• Variable costs are costs that are a function of output in the production period. 
• For example, wages of casual labourers and cost of raw materials and cost of all other inputs that vary with output are variable costs. Variable costs vary directly and sometimes proportionately with output. 
• Over certain ranges of production, they may vary less or more than proportionately depending on the utilization of fixed facilities and resources during the production process.

PRIVATE COSTS AND SOCIAL COSTS

Private costs and Social costs:

• Private costs are costs actually incurred or provided for by firms and are either explicit or implicit.
•  They normally figure in business decisions as they form part of total cost and  are internalised by the firm. 
• Social cost, on the other hand, refers to the total cost borne by the society on account of a business activity and includes private cost and external cost. 
• It includes the cost of resources for which the firm is not required to pay price such as atmosphere, rivers, roadways etc. and the cost in terms of dis-utility created such as air, water and environment pollution.

HISTORICAL COSTS AND REPLACEMENT COSTS

Historical costs and Replacement costs: 

• Historical cost refers to the cost incurred in the past on the acquisition of a productive asset such as machinery, building etc.
•  Replacement cost is the money expenditure that has to be incurred for replacing an old asset. Instability in prices make these two costs diuer. 
• Other things remaining the same, an increase in price will make replacement costs higher than historical cost.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

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This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

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INCREMENTAL COSTS AND SUNK COSTS

Incremental costs and Sunk costs:

•  Theoretically, incremental costs are related to the concept of marginal cost. Incremental cost refers to the additional cost incurred by a firm as result of a business decision.
•  For example, incremental costs will have to be incurred by a firm when it makes a decision to change its product line, replace worn out machinery, buy a new production facility or acquire a new set of clients. 
• Sunk costs refer to those costs which are already incurred once and for all and cannot be recovered. They are based on past commitments and cannot be revised or reversed if the firm wishes to do so.
•  Examples of sunk costs are expenses incurred on advertising, R& D, specialised equipments and fixed facilities such as railway lines. Sunk costs act as an important barrier to entry of firms into business.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

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DIRECT OR TRACEABLE COST

Direct or Traceable costs and Indirect or Non-Traceable costs:

• Direct costs are those which have direct relationship with a component of operation like manufacturing a product, organizing a process or an activity etc. Since such costs are directly related to a product, process or machine, they may vary according to the changes occurring in these. 
• Direct costs are costs that are readily identified and are traceable to a particular product, operation or plant. Even overhead costs can be direct as to a department; manufacturing costs can be direct to a product line, sales territory, customer class etc. We must know the purpose of cost calculation before considering whether a cost is direct or indirect.
• Indirect costs are those which are not easily and definitely identifiable in relation to a plant, product, process or department. 
• Therefore, such costs are not visibly traceable to specific goods, services, operations, etc.; but are nevertheless charged to diuerent jobs or products in standard accounting practice. 
• The economic importance of these costs is that these, even though not directly traceable to a product, may bear some functional relationship to production and may vary with output in some definite way.
•  Examples of such costs are electric power and common costs incurred for general operation of business benefiting all products jointly.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

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GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Int

OUTLAY COSTS AND OPPORTUNITY COSTS

Outlay costs and Opportunity costs:

•  Outlay costs involve actual expenditure of funds on, say, wages, materials, rent, interest, etc. Opportunity cost, on the other hand, is concerned with the cost of the next best alternative opportunity which was foregone in order to pursue a certain action.
•  It is the cost of the missed opportunity and involves a comparison between the policy that was chosen and the policy that was rejected. For example, the opportunity cost of using capital is the interest that it can earn in the next best use with equal risk.
• A distinction between outlay costs and opportunity costs can be drawn on the basis of the nature of the sacrifice. Outlay costs involve financial expenditure at some point of time and hence are recorded in the books of account.
•  Opportunity cost is the amount or subjective value that is foregone in choosing one activity over the next best alternative. It relates to sacrificed alternatives; it is, in general not recorded in the books of account.
• The opportunity cost concept is generally very useful for business managers and therefore it has to be considered whenever resources are scarce and a decision involving choice of one option over other(s) is involved. e.g., in a cloth mill which spins its own yarn, the opportunity cost of yarn to the weaving department is the price at which the yarn could be sold. This has to be considered while measuring profitability of the weaving operations.
• In long-term cost calculations also opportunity cost is a useful concept e.g., while calculating the cost of higher education, it is not the tuition fee and cost of books alone that are relevant. One should also take into account the earnings foregone, other foregone uses of money which is paid as tuition fees and the value of missed activities etc. as the cost of attending classes.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Int

COST CONCEPT

COST CONCEPTS

• Accounting Costs and Economic costs: An entrepreneur has to pay price for the factors of production which he employs for production. He thus pays wages to workers employed, prices for the raw materials, fuel and power used, rent for the building he hires and interest on the money borrowed for doing business. 
• All these are included in his cost of production and are termed as accounting costs. Accounting costs relate to those costs which involve cash payments by the entrepreneur of the firm. Thus, accounting costs are explicit costs and includes all the payments and charges made by the entrepreneur to the suppliers of various productive factors. Accounting costs are expenses already incurred by the firm. Accountants record these in the financial statements of the firm. 
• However, it generally happens that an entrepreneur invests a certain amount of capital in his business. If the capital invested by the entrepreneur in his business had been invested elsewhere, it would have earned a certain amount of interest or dividend. 
• Moreover, an entrepreneur may devote his time to his own work of production and contributes his entrepreneurial and managerial ability to do business. Had he not set up his own business, he would have sold his services to others for some positive amount of money. Accounting costs do not include these costs. These costs form part of economic cost. 

Thus, economic costs include:

(1) the normal return on money capital invested by the entrepreneur himself in his own business; 

(2) the wages or salary not paid to the entrepreneur, but could have been earned if the services had been sold somewhere else. 

Likewise, the monetary rewards for all factors owned by the entrepreneur himself and employed by him in his own business are also considered a part of economic costs. Economic costs take into account these accounting costs; in addition, they also take into account the amount of money the entrepreneur could have earned if he had invested his money and sold his own services and other factors in the next best alternative uses. Accounting costs are also called explicit costs whereas the cost of factors owned by the entrepreneur himself and employed in his own business is called implicit costs. Thus, economic costs include both accounting costs and implicit costs. Therefore, economic costs are useful for businessmen while making decisions.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Int

DECREASING RETURNS TO SCALE

Decreasing Returns to Scale: 

When output increases in a smaller proportion with an increase in all inputs, decreasing returns to scale are said to prevail. When a firm goes on expanding by increasing all inputs, decreasing returns to scale set in. Decreasing returns to scale eventually occur because of increasing diflculties of management, coordination and control. When the firm has expanded to a very large size, it is diflcult to manage it with the same eflciency as before.

The Cobb-Douglas production function, explained earlier is used to explain“returns to scale” in production. Originally, Cobb and Douglas assumed that returns to scale are constant. The function was constructed in such a way that the exponents summed to a+1-a=1. However, later they relaxed the requirement and rewrote the equation as follows:

                                      Q = K La C b

Where

 ‘Q’ is output, ‘L’ the quantity of labour and ‘C’ the quantity of capital, ‘K’ and ‘a’ and ‘b’ are positive constants.

If a + b > 1 Increasing returns to scale result i.e. increase in output is more than the proportionate increase in the use of factors (labour and capital).

a + b = 1 Constant returns to scale result i.e. the output increases in the same proportion in which factors are increased.

a + b < 1 decreasing returns to scale result i.e. the output increases less than the proportionate increase in the labour and capital.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Int

INCREASING RETURNS TO SCALE

Increasing Returns to Scale:

•  As stated earlier, increasing returns to scale means that output increases in a greater proportion than the increase in inputs. When a firm expands, increasing returns to scale are obtained in the beginning. For example, a wooden box of 3 ft. cube contains 9 times greater wood than the wooden box of 1 foot-cube.
•  But the capacity of the 3 foot- cube box is 27 times greater than that of the one foot cube. 
• Many such examples are found in the real world. Another reason for increasing returns to scale is the indivisibility of factors. Some factors are available in large and lumpy units and can, therefore, be utilised with utmost eflciency at a large output. If all the factors are perfectly divisible, increasing returns may not occur.
•  Returns to scale may also increase because of greater possibilities of specialisation of land and machinery.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Int

CONSTANT RESULT TO SCALE

Constant Returns to Scale: 

As stated above, constant returns to scale means that with the increase in the scale in some proportion, output increases in the same proportion. Constant returns to scale, otherwise called as “Linear Homogeneous Production Function”, may be expressed as follows:

                                       kQx = f( kK, kL)

                                                 = k (K, L)

If all the inputs are increased by a certain amount (say k) output increases in the same proportion (k). It has been found that an individual firm passes through a long phase of constant returns to scale in its lifetime.

RETURN TO SCALE

Returns to Scale:

• We shall now study about changes in output when all factors of production in a particular production function are increased together. In other words, we shall study the behaviour of output in response to a change in the scale.
•  A change in scale means that all factors of production are increased or decreased in the same proportion. Change in scale is diuerent from changes in factor proportions. Changes in output as a result of the variation in factor proportions, as seen before, form the subject matter of the law of variable proportions. 
• On the other hand, the study of changes in output as a consequence of changes in scale forms the subject matter of returns to scale which is discussed below. It should be kept in mind that the returns to scale faced by a firm are solely technologically determined and are not influenced by economic decisions taken by the firm or by market conditions. 
• Returns to scale may be constant, increasing or decreasing. If we increase all factors i.e., scale in a given proportion and output increases in the same proportion, returns to scale are said to be constant. Thus, if doubling or trebling of all factors causes a doubling or trebling of output, then returns to scale are constant. 
• But, if the increase in all factors leads to more than proportionate increase in output, returns to scale are said to be increasing. Thus, if all factors are doubled and output increases more than double, then the returns to scale are said to be increasing. 
• On the other hand, if the increase in all factors leads to less than proportionate increase in output, returns to scale are decreasing. It is needless to say that this law operates in the long run when all the factors can be changed in the same proportion simultaneously.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Int

It should be remembered that increasing returns to scale is not the same as increasing marginal returns. Increasing returns to scale applies to ‘long run’ in which all inputs can be changed. Increasing marginal returns refers to the short run in which at least one input is fixed. The existence of fixed inputs in the short run gives rise to increasing and later to diminishing marginal returns.

STAGE OF OPERATION

Stage of Operation: 

An important question is in which stage a rational producer will seek to produce. A rational producer will never produce in stage 3 where marginal product of the variable factor is negative. This being so, a producer can always increase his output by reducing the amount of variable factor. Even if the variable factor is free of cost, a rational producer stops before the beginning of the third stage.

A rational producer will also not produce in stage 1 as he will not be making the best use of the fixed factors and he will not be utilising fully the opportunities of increasing production by increasing the quantity of the variable factor whose average product continues to rise throughout stage 1. Even if the fixed factor is free of cost in this stage, a rational entrepreneur will continue adding more variable factors.

A rational producer will always produce in stage 2 where both the marginal product and average product of the variable factors are diminishing. At which particular point in this stage, the producer will decide to produce depends upon the prices of factors. The optimum level of employment of the variable factor (here labour) will be determined by applying the principle of marginalism in such a way that the marginal revenue product of labour is equal to the marginal wages. (The principle of marginalism is explained in detail in the chapter discussing equilibrium in diuerent types of markets.)

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte

STAGE OF NEGATIVE RETURNS

 Stage of Negative Returns:

  Total product declines, MP is negative, average product is diminishing. This stage is called the stage of negative returns since the marginal product of the variable factor is negative during this stage.

Explanation the law of negative returns: 

As the amount of the variable factor continues to be increased to a constant quantity of the other, a stage is reached when the total product declines and marginal product becomes negative. This is due to the fact that the quantity of the variable factor becomes too excessive relative to the fixed factor so that they get in each other’s ways with the result that the total output falls instead of rising. In such a situation, a reduction in the units of the variable factor will increase the total output.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte

STAGE OF DIMINISHING RETURNS

 Stage of Diminishing Returns: 

 The total product continues to increase at a diminishing rate until it reaches its maximum at point H, where the second stage ends. In this stage, both marginal product and average product of the variable factor are diminishing but are positive. At the end of this stage i.e., at point M (corresponding to the highest point H of the total product curve), the marginal product of the variable factor is zero. It is known as the stage of diminishing returns because both the average and marginal products of the variable factors continuously fall during this stage. This stage is very important because the firm will seek to produce within its range.

Explanation of law of diminishing returns:

 The question arises as to why we get diminishing returns after a certain amount of the variable factor has been added to the fixed quantity of that factor. As explained above, increasing returns occur primarily because of more eflcient use of fixed factors as more units of the variable factor are combined to work with it. Once the point is reached at which the amount of variable factor is suflcient to ensure eflcient utilisation of the fixed factor, any further increases in the variable factor will cause marginal and average product to decline because the fixed factor then becomes inadequate relative to the quantity of the variable factor. Continuing the above example, when four men were put to work on one machine, the optimum combination was achieved. Now, if the fifth person is put on the machine, his contribution will be nil. In other words, the marginal productivity will start diminishing.

The phenomenon of diminishing returns, like that of increasing returns, rests upon the indivisibility of the fixedfactor. Just as the average product of the variable factor increases in the first stage when better utilisation of the fixed indivisible factor is being made, so the average product of the variable factor diminishes in the second stage when the fixed indivisible factor is being worked too hard. Another reason ouered for the operation of the law of diminishing returns is the imperfect substitutability of one factor for another. Had the perfect substitute of the scarce fixed factor been available, then the paucity of the scarce fixed factor during the second stage would have been made up by increasing the supply of its perfect substitute with the result that output could be expanded without diminishing returns.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte

THE STAGE OF INCREASING RETURNS

The Stage of Increasing Returns: 

In this stage, the total product increases at an increasing rate upto a point (in figure upto point F), marginal product also rises and is maximum at the point corresponding to the point of inflexion and average product goes on rising. From point F onwards during the stage one, the total product goes on rising but at a diminishing rate. Marginal product falls but is positive. The stage 1 ends where the AP curve reaches its highest point.

Thus in the first stage, the AP curve rises throughout whereas the marginal product curve first rises and then starts falling after reaching its maximum. It is to be noted that the marginal product although starts declining, remains greater than the average product throughout the stage so that average product continues to rise.

Explanation of law of increasing returns:

 The law of increasing returns operates becausein the beginning, the quantity of fixed factors is abundant relative to the quantity of the variable factor. As more units of the variable factor are added to the constant quantity of the fixed factors, the fixed factors are more intensively and euectively utilised i.e., the eflciency of the fixed factors increases as additional units of the variable factors are added to them. This causes the production to increase at a rapid rate. For example, if a machine can be eflciently operated when four persons are working on it and if in the beginning we are operating it only with three persons, production is bound to increase if the fourth person is also put to work on the machine since the machine will be euectively utilised to its optimum. This happens because, in the beginning some amount of fixed factor remained unutilised and, therefore, when the variable factor is increased, fuller utilisation of the fixed factor becomes possible and it results in increasing returns. A question arises as to why the fixed factor is not initially taken in a quantity which suits the available quantity of the variable factor. The answer is that, generally, those factors which are indivisible are taken as fixed. Indivisibility of a factor means that due to technological requirements, a minimum amount of that factor must be employed whatever be the level of output. Thus, as more units of the variable factor are employed to work with an indivisible fixed factor, output greatly increases due to fuller utilisation of the latter. The second reason why we get increasing returns at the initial stage is that as more units of the variable factor are employed, the eflciency of the variable factor increases. This is because introduction of division of labour and specialisation becomes possible with suflcient quantity of the variable factor and these results in higher productivity.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte

THE LAW OF VARIABLE PROPORTIONS

 The Law of Variable Proportions or The Law of Diminishing Returns:

In the short run, the input output relations are studied with one variable input (labour) with all other inputs held constant. The laws of production under these conditions are known under various names as the law of variable proportions (as the behaviour of output is studied by changing the proportion in which inputs are combined) the law of returns to a variable input (as any change in output is taken as resulting from the additional variable input) or the law of diminishing returns (as returns eventually diminish).

The law states that as we increase the quantity of one input which is combined with other fixed inputs, the marginal physical productivity of the variable input must eventually decline. In other words, an increase in some inputs relative to other fixed inputs will, in a given state of technology, cause output to increase; but after a point, the extra output resulting from the same addition of extra input will become less and less.

Before discussing this law, if would be appropriate to understand the meaning of total product, average product and marginal product.

Total Product (TP): Total product is the total output resulting from the euorts of all the factors of production combined together at any time. If the inputs of all but one factor are held constant, the total product will vary with the quantity used of the variable factor. Column (1) of Table 1 presents the quantity of variable factor (labour) used along with the factors whose quantity is held constant and column (2) represent the total product at various levels of use of the variable input.

                                                 Table 1: Product Schedule

Quantity of labour	Total Product (TP)	Average Product (AP)	Marginal Product (MP)
(1)	(2)	(3)	(4)
1	100	100.0	100
2	210	105.0	110
3	330	110.0	120
4	440	110.0	110
5	520	104.0	80
6	600	100.0	80
7	670	95.7	70
8	720	90.0	50
9	750	83.3	30
10	750	75.0	0
11	740	67.3	–10

We find that when one unit of labour is employed along with other factors of production, the total product is 100 units. When two units of labour are employed, the total product rises to 210 units. The total product goes on rising as more and more units of labour are employed. With 10 units of labour, the total product rises to 750 units. When 11 units of labour are employed, total product falls to 740 units due to negative returns from the 11 th unit of labour.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte

SHORT VS LONG RUN PRODUCTION FUNCTION

Short-Run Vs Long-Run Production Function
The production function of a firm can be studied in the context of short period or long period. It is to be noted that in economic analysis, the distinction between short-run and long-run is not related to any particular measurement of time (e.g. days, months, or years). In fact, it refers to the extent to which a firm can vary the amounts of the inputs in the production process. A period will be considered short-run period if the amount of at least one of the inputs used remains unchanged during that period. Thus, short-run production function shows the maximum amount of a good or service that can be produced by a set of inputs, assuming that the amount of at least one of the inputs used remains unchanged. Generally, it has been observed that during the short period or in the short run, a firm cannot install a new capital equipment to increase production. It implies that capital is a fixed factor in the short run. Thus, in the short-run, the production function is studied by holding the quantities of capital fixed, while varying the amount of other factors (labour, raw material etc.) This is done when the law of variable proportion is studied.

The production function can also be studied in the long run. The long run is a period of time (or planning horizon) in which all factors of production are variable. It is a time period when the firm will be able to install new machines and capital equipments apart from increasing the variable factors of production. A long- run production function shows the maximum quantity of a good or service that can be produced by a set of inputs, assuming that the firm is free to vary the amount of all the inputs being used. The behaviour of production when all factors are varied is the subject matter of the law of returns to scale.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte

PRODUCTION FUNCTION

PRODUCTION FUNCTION
The production function is a statement of the relationship between a firm’s scarce resources (i.e. its inputs) and the output that results from the use of these resources. More specifically, it states technological relationship between inputs and output. The production function can be algebraically expressed in the form of an equation in which the output is the dependent variable and inputs are the independent variables. The equation can be expressed as:

                                        Q = f (a, b, c, d …….n)

Where ‘Q’ stands for the rate of output of given commodity and a, b, c, d…….n, are the diuerent factors (inputs) and services used per unit of time.

Assumptions of Production Function: There are three main assumptions underlying any production function.

First we assume that the relationship between inputs and outputs exists for a specific period of time. In other words, Q is not a measure of accumulated output over time.

Second, it is assumed that there is a given “state-of-the-art” in the production technology. Any innovation would cause change in the relationship between the given inputs and their output. For example, use of robotics in manufacturing or a more eflcient software package for financial analysis would change the input-output relationship.

Third assumption is that whatever input combinations are included in a particular function, the output resulting from their utilization is at the maximum level.

The production function can be defined as:
The relationship between the maximum amount of output that can be produced and the input required to make that output. It is defined for a given state of technology i.e., the maximum amount of output that can be produced with given quantities of inputs under a given state of technical knowledge. (Samuelson)
It can also be defined as the minimum quantities of various inputs that are required to yield a given quantity of output.

The output takes the form of volume of goods or services and the inputs are the diuerent factors of production i.e., land, labour, capital and enterprise. To illustrate, for a company which produces beverages, the inputs could be fixed assets such as plant and machinery; raw materials such as carbonated water, sweeteners and flavourings and labour such as assembly line workers, support-stau and supervisory personnel.

For the purpose of analysis, the whole array of inputs in the production function can be reduced to two; L and K. Restating the equation given above, we get:

Q = f (L, K). 

Where

 Q = Output

 L= Labour

K= Capital

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte

ENTERPRISE'S PROBLEMS

Enterprise’s Problems

An enterprise faces a number of problems from its inception, through its life time and till its closure. We shall try to get a few insights about them from the following discussion.

Problems relating to objectives: As mentioned earlier, an enterprise functions in the economic, social, political and cultural environment. Therefore, it has to set its objectives in relation to its environment. The problem is that these objectives are multifarious and very often conflict with one another. For example, the objective of maximising profits is in conflict with the objective of increasing the market share which generally involves improving the quality, slashing the prices etc. Thus the enterprise faces the problem of not only choosing its objectives but also striking a balance among them.

Problems relating to location and size of the plant: An enterprise has to decide about the location of its plant. It has to decide whether the plant should be located near the source of raw material or near the market. It has to consider costs such as cost of labour, facilities and cost of transportation. Of course, the entrepreneur will have to weigh the relevant factors against one another in order to choose the right location which is most economical.

Another problem relates to the size of the firm. It has to decide whether it is to be a small scale unit or large scale unit. Due consideration will have to be given to technical, managerial, marketing and financial aspects of the proposed business before deciding on the scale of operations. It goes without saying that the management must make a realistic evaluation of its strengths and limitations while choosing a particular size for a new unit.

Problems relating to selecting and organising physical facilities: A firm has to make decision on the nature of production process to be employed and the type of equipments to be installed. The choice of the process and equipments will depend upon the design chosen and the required volume of production. As a rule, production on a large scale involves the use of elaborate, specialized and complicated machinery and processes. Quite often, the entrepreneur has to choose from among diuerent types of equipments and processes of production. Such a choice will be based on the evaluation of their relative cost and eflciency. Having determined the equipment to be used and the processes to be employed, the entrepreneur will prepare a layout illustrating the arrangement of equipments and buildings and the allocation for each activity.

Problems relating to Finance: An enterprise has to undertake not only physical planning but also expert financial planning. Financial planning involves (i) determination of the amount of funds required for the enterprise with reference to the physical plans already prepared (ii) assessment of demand and cost of its products (iii) estimation of profits on investment and comparison with the profits of comparable existing concerns to find out whether the proposed investment will be profitable enough and (iv) determining capital structure and the appropriate time for financing the enterprise etc.

Problems relating to organisation structure: An enterpriseals of aces problems relating to  the organisational structure. It has to divide the total work of the enterprise into major specialised functions and then constitute proper departments for each of its specialized functions. Not only this, the functions of all the positions and levels would have to be clearly laid down and their inter-relationship (in terms of span of control, authority, responsibility, etc) should be properly defined. In the absence of clearly defined roles and relationships, the enterprise may not be able to function eflciently.

Problems relating to marketing: Proper marketing of its products and services is essential for the survival and growth of an enterprise. For this, the enterprise has to discover its target market by identifying its actual and potential customers, and determine tactical marketing tools it can use to produce desired responses from its target market. After identifying the market, the enterprise has to make decision regarding 4 P’s namely,

 Product: variety, quality, design, features, brand name, packaging, associated services, utility etc.

 Promotion: Methods of communicating with consumers through personal selling, social contacts, advertising, publicity etc.

 Price: Policies regarding pricing, discounts, allowance, credit terms, concessions, etc.

 Place: Policy regarding coverage, outlets for sales, channels of distribution, location and layout of stores, inventory, logistics etc.

Problems relating to legal formalities: A number of legal formalities have to be carried out during the time of launching of the enterprise as well as during its life time and its closure. These formalities relate to assessing and paying diuerent types of taxes (corporate tax, excise duty, sales tax, custom duty, etc.), maintenance of records, submission of various types of information to the relevant authorities from to time, adhering to various rules and laws formulated by government (for example, laws relating to location, environmental protection and control of pollution, size, wages and bonus, corporate management licensing, prices) etc.

Problems relating to industrial relations: With the emergence of the present day factory system of production, the management has to devise special measures to win the co-operation of a large number of workers employed in industry. Misunderstanding and conflict of interests have assumed enormous dimensions that these cannot be easily and promptly dealt with. Industrial relations at present are much more involved and complicated. Various problems which an enterprise faces with regard to industrial relations are - the problem of winning workers’ cooperation, the problem of enforcing proper discipline among workers, the problem of dealing with organised labour and the problem of establishing a state of democracy in the industry by associating workers with the management of industry.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte

NATIONAL OBJECTIVES

 National objectives:

 An enterprise should endeavour for fulfilment of national needs and aspirations and work towards implementation of national plans and policies. Some of the national objectives are:

• To remove inequality of opportunities and provide fair opportunity to all to work and to progress.
• To produce according to national priorities.
• To help the country become self-reliant and avoid dependence on other nations.
• To train young men as apprentices and thus contribute in skill formation for economic growth and development.

Since all the enterprises have multiple goals, they need to set priorities. This requires appropriate balancing of the objectives in order to determine the relative importance of each.

Various objectives of an enterprise may conflict with one another. For example, the profit maximisation objective may not be wholly consistent with the marketing objective of increasing its market share which may involve improvement in quality, slashing down of product prices, improved customer service, etc. Similarly, its social responsibility objective may run into conflict with the introduction of technological changes which may cause environmental pollution. In such situations, the manager has to strike a balance between the two so that both can be achieved with reasonable success.

In the above paragraphs, we have discussed the diuerent objectives of an enterprise. However, no comprehensive economic theory explaining the multitudes of behaviour of firms under various market conditions (perfect competition, monopoly, etc.) has been developed so far. Therefore, in rest of this book, we shall continue to assume that firms aim at maximising profits until and unless otherwise mentioned.

In the pursuit of this objective, an enterprise’s actions may get constrained by many factors. Important among them are:

1. Lack of knowledge and information: The enterprise functions in an uncertain world where due to lack of accurate information, many variables that auect the performance of the firm cannot be correctly predicted for the current month or the current year, let alone for the future years. Similarly, the firms may not know about the prices of all inputs and the characteristics of all relevant technologies. Under such circumstances, it is very diflcult to determine what the profit maximising price is.

2. There may be other constraints such as restrictions imposed in the public interest by the state on the production, price and movement of factors. In practice, there are several hindrances for free mobility of labour and capital. For example, trade unions may place several restrictions on the mobility of labour or specialised training may be required to enable workers to change occupation. These contingencies may make attainment of maximum profits a diflcult task.

3. There may be infrastructural inadequacies and consequent supply chain bottlenecks resulting in shortages and unanticipated emergencies. For example, there could be frequent power cuts, irregular supply of raw-materials or non-availability of proper transport. This could put limitations on the power of enterprises to maximise profits.

4. Changes in business and economic conditions which become contagious due to the highly connected nature of economies, place constraints by causing demand fluctuations and instability in firms’ sales and revenues. Besides, external factors such as sudden change in government policies with regard to location, prices, taxes, production, etc. or natural calamities like fire, flood etc. may place additional burdens on the business firms and defeat their plans. When firms are forced to implement policies in response to fiscal limitations, legal, regulatory, or contractual requirements, these have adverse consequences on the firms’ profitability and growth plans.

5. Events such as inflation, rising interest rates, unfavourable exchange rate fluctuations cause increased raw material, capital and labour costs and auect the budgets and financial plans of firms. Significant constraints are also imposed by the inability of firms to find skilled workforce at competitive wages as well as due to the recurring need for personnel training.

Goods and Service Tax Book (Updated upto 20th January 2018)

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. 

Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!! 

This book is approved by Ministry of HRD Govt.of India as Students friendly book.

Click on link given to Purchase Book-  https://goo.gl/ArNFJx

Author Name- CA Harshita Raichandani and CA Dhananjay Ojha

Unique features of This GST Book.

1.80+ GST chart included for quick revision of chapter.

2.Provisions presented in this book in simple manner.

3.Bullet and Heading given for Long term memorisation.

4.Updated upto 25th GST council recommendation {18th January, 2018}.

5.70+ Value added questions given with answer.

6.16 Chapters fully Coverage given.

7.Definitions of Technical term related with GST is given at one place.

8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.

Click on below Link to purchase Student friendly GST Book.

http://www.comgurukul.com/educational-books/gst-book/

GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul

GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte