Tag: Features

Ledger Merchant Account: Meaning, Advantages, and Features
Ledger Merchant Account: The ledger system of double-entry bookkeeping includes the utilization of various record administered books (known as a bunch of books) to record exact data, in cash esteems, of every day exchanging activities of a business. Accounting essay present; Ledger Account is a diary where an organization keeps up the information of the relative multitude of exchanges and fiscal summary. The organization’s overall cartulary account coordinate under the overall cartulary with the monetary record grouped into various records like resources, Accounts receivable, creditor liability, investors, liabilities, values, incomes, charges, costs, benefit, misfortune, reserves, advances, bonds, stocks, compensations, compensation, and so forth.

Ledger Merchant Account: Meaning, Definition, Types, Features, Advantages, and Disadvantages.

Before understanding What ledger accounts are? Let us take a concise prologue to Ledger. Diary is utilized to record the exchanges sequentially. Yet, Journal just gives the impact of individual exchanges. The proprietor of a business, in any case, isn’t just keen on thinking about the impacts of individual exchanges on fiscal summaries yet also the gathered impact of each Account.

For instance, if he needs to know the aggregate sum of buys identifying with a specific bookkeeping period, at that point it will be a chaotic task to discover it from the Journal as it contains countless exchanges identifying with buys at better places as indicated by their particular dates of the event. In any case, he can without much of a stretch locate the number of all-out buys from the “Buys Account”. Subsequently, it requires that exchanges of a comparative sort should figure out and collected in one spot. This spot is a cartulary.

Meaning of Ledger Merchant Account:

What Does Accounting Ledger Mean? The notes or diary gives a total posting of the everyday exchanges of a business. Be that as it may, it doesn’t give data about a particular record in one spot. For instance, to realize how much money balance we have, the bookkeeping agent would need to check all the diary sections in which money includes, and this is an arduous work; because there are hundreds or even great many money exchanges recorded on various pages of the diary. To dodge this trouble, the charge and credit of journalized exchanges move to ledger accounts. Hence all the progressions for a solitary record are situated in one spot – in a cartulary account. This makes it simple to decide the current equilibrium of any record.

At the point when all the exchanges of a given period have been journalized, the following thing is to characterize them as per the records influenced. All comparative exchanges must unite. For example, all exchanges identifying with money must place in one spot. Likewise, all exchanges with a client or a provider must collect in one spot. The book in which this characterization do know as the ledger.

Definition of Ledger Merchant Account:

What is the Ledger in Business? The cartulary is a book that contains a consolidated and arranged record of the relative multitude of financial exchanges of the business by and large brought, moved, or posted from the books of unique section.

The cartulary knows as the ruler of all books of records since all sections from the books of unique passage must present on the different records in the ledger. It should notice that the diary contains a sequential record while the cartulary contains an ordered record, all things considered.

Kinds of Types of Ledger Merchant Account:

A cartulary is where all ledger accounts are kept up in a summed up manner. What are 3 different types of Ledger double entry? All records joined to make a cartulary book. A cartulary otherwise calls the chief book of records and it shapes a perpetual record of all business exchanges. Prevalently there are 3 unique types of the ledger – Sales, Purchase, and General ledger.

Sales Ledger or Debtor’s Ledger:

Deals or Sales Ledger is a cartulary where the organization keeps up the exchange of selling the items, administrations, or cost of merchandise offered to clients. This cartulary gives the possibility of deals with income and pays explanation. First among various sorts of ledgers is “Deals or Debtors’ ledger”.

It is a gathering of all records identified with clients to whom products have been sold using a loan (Credit Sales). The Sum of all the cash owed to a business by their clients appears here and name as Accounts Receivable, Trade Debtors, or Sundry Debtors. The records generally organize in sequential requests, be that as it may, these days all the cartulary accounts are kept up with the assistance of bookkeeping ERPs.

Purchase Ledger or Creditor’s Ledger:

Purchase or Buy Ledger is a cartulary where the organization puts together the exchange of buying the administrations, items, or products from different organizations. It gives the permeability of how much sum the organization paid to different organizations. It is a gathering of all records identified with vendors from whom products have been bought using a loan (Credit Purchases).

The Sum of all the cash owed by a business to their merchants is appeared here and name as Accounts Payable, Trade Creditors, or Sundry Creditors. The all-out money related sum inside the bought cartulary appears in the preliminary equilibrium and the asset report at its fitting spot.

General Ledger:

General Ledger isolates into two kinds – Nominal and Private Ledger. An ostensible cartulary gives data on costs, pay, deterioration, protection, and so on Also, a Private ledger gives private data like compensations, compensation, capitals, and so on Private ledger isn’t open to everybody. Organizations typically make a solitary general ledger which incorporates 2 extra subtypes of ledgers for example ostensible and private ledger.

These two might remember for the rundown for various sorts of ledgers in bookkeeping. An overall cartulary is a brought together gathering for all the cartulary records of a business. It contains a wide range of records which can find in an association; for example, resources, liabilities, capital or value, incomes, costs, and so forth

According to conventional or UK style bookkeeping; It comprises of all ostensible and genuine records important to plan financials for an organization. For example Building, Office hardware, Furniture, etc.
- Nominal Ledger: As the name recommends it contains all ostensible records for example cost, misfortunes, wages, and gains. Models – Salaries, Sales, Purchases, Returns Inward/Outward, Rent, Stationery, Insurance, Depreciation, and so on
- Private Ledger: They comprise records that are secret in nature, for example; capital, drawings, compensations, and so forth These records are just available by chosen people.
A few organizations do make separate general, ostensible, and private ledger.

Features or highlights or characteristics of Ledger Merchant Account:

The ledger has the following main characteristics or features:
- It has two indistinguishable sides – the left-hand side (charge side) and the right-hand side (credit side).
- The charge part of the relative multitude of exchanges record on the charge side; and, credit parts of the relative multitude of exchanges record on the credit side as per date.
- The contrast between the sums of the different sides speaks to adjust. The overabundance of the charge side over the credit side demonstrates charge balance; while an abundance of the credit side over the charge side shows the credit balance. On the off chance that the different sides are equivalent, there will be no equilibrium.
- For the most part, the equilibrium draws at the year-end; and, recorded on the lesser side to make the equivalent of the different side. This equilibrium knows as the end balance.
- The end equilibrium of the current year turns into the initial equilibrium of the following year.
Ledger Merchant Account: Meaning, Advantages, and Features; Image from Pixabay.

Merits or Benefits or Advantages of Ledger Merchant Account:

What are the advantages of Ledger double entry? Keeping up the ledger is an unquestionable requirement in each bookkeeping framework. It is important as will be obvious from its preferences.
- Exchanges identifying with a specific individual, thing, or heading of use or pay to assemble in the concern record in one spot.
- At the point when each record occasionally adjusts it mirrors the net situation of that account.
- Ledger is the venturing stone for getting ready Trial Balance – which tests the arithmetical exactness of the bookkeeping books.
- Since the sections recorded in the diary refer to in the cartulary the chance of mistakes of defalcations decreases to the base.
- Ledger is the objective of all sections made in diary or sub-diaries.
- Ledger is the “storage facility” of all data which consequently utilize for getting ready last records and fiscal summaries.
The accompanying focuses feature the best eight focal points of a ledger. The points of interest are:

The readiness of Trial Balance:

It is preposterous to expect to set up a Trial Balance without ledgers. Since a Trial Balance sees up by taking up the cartulary accounts balance. Besides, arithmetical precision is unimaginable.

Introducing Final Position:

We realize that the last record must see up from a Trial Balance (i.e., Trading Account, Profit and Loss Account, and Balance Sheet). In this way, on the off chance that we don’t get the cartulary accounts balance from a Trial Balance, we can’t plan last records.

Utilization of Double Entry System:

Twofold Entry System finishes just when we present the diaries on various cartulary accounts.

Deciding Results of Each Account:

The consequences of each record can get from the cartulary dependent on Double Entry standards.

Keeping up Classified Accounts Indirect Advantages:

The points of interest of grouped records might uncover in the wake of recording in the cartulary account appropriately.

Introducing Statistical Information:

The cartulary accounts with their separate adjust are the wellsprings of measurable data that utilize by the administration while dynamic.

Gathering Information:

The cartulary might know as the assortment or storeroom of different exchanges.

Present Financial Position:

The monetary situation of an endeavor (i.e., after setting up the last record) must know whether we keep up the cartulary account appropriately.

Demerits or Limitations or Disadvantages of Ledger Merchant Account:

As Merchant Account Keeping up the ledger is an unquestionable requirement in each bookkeeping framework. Its disadvantages will be obvious from its preferences;
- Ledger is dependent on the journal entry, they are not working independently. It is fully helpless without journal data.
- They are not opening entry while closing entry, and also they analyze from the fixed data record.
- Ledger is a system of double-entry bookkeeping; but, some data is both side columns belong as cash or bank or name is all depend on credit or debit entry.
November 25, 2020
Copy Book or Journal: Meaning, Advantages, and Futures
Copy Book or Journal: In Accounting Essay – The word journal has been gotten from the French word “Jour” Jour implies a day. Along these lines, the journal implies every day. Journal in records book names as the book of the original passage. It knows as the book of the original section since, in such a case that any monetary exchange happens, the bookkeeper of an organization would initially record the exchange in the Daybook. That is the reason a journal in bookkeeping is basic for anybody to comprehend. Regardless of what your identity is, an eventual bookkeeper, an account devotee, or an investor who might want to comprehend the characteristic exchanges of an organization, you have to realize how to pass a Daybook passage before whatever else.

Copy Book or Journal: Meaning, Definition, Types, Features or Characteristics, Advantages or Benefits, and Limitations or Disadvantages.

Exchanges record day by day in a Day book and thus it has named so. When an exchange happens its charge and credit perspectives are investigated and above all else, recorded sequentially (in the order of their event) in a book along with its short portrayal. This book knows as a Daybook. Thus we see that the main capacity of a journal is to show the connection between the two records associated with an exchange. This encourages the composition of a record. Since exchanges are first of all recorded in quite a while, so it knows as the book of original passage or prime section or essential passage or starter passage, or first passage. Accounting Essays;

Meaning and Definition of Copy Book or Journal:

Which means and definition of Journal; Journal is the book of an original section wherein, in the wake of adhering to the guidelines of charge and credit, all business exchanges record in sequential order. Hence, a Daybook implies a book that records all financial exchanges of a business on a regular schedule. The money-related exchanges record in sequential order i.e., in the order of their event.

As the recording of exchanges is done first in the journal, it likewise calls the book of original passage or a prime section. Journalizing characterizes as the way toward recording exchanges in the Daybook. In the wake of deciding the specific record to charge and credit, every exchange independently record.

A journal might characterize as the book of the original or prime section containing a sequential record of the exchanges from which presenting is done on the record. The exchanges record first in the Daybook in the order in which they happen. In the bookkeeping world, Journal alludes to a book wherein exchanges are logged for the absolute first time, and that is the reason it additionally calls as “Book of Original Entry”. In this book, all the ordinary business exchanges enter consecutively, for example, when they emerge.

From that point forward, the exchanges are presented on the Ledger, in the concerned records. At the point when the exchanges record in the journal, they call Journal Entries. According to the Double Entry System of Book Keeping, each exchange influences different sides, for example, charge and credit. Thus, the exchanges enter in the book according to the Golden Rules of Accounting, to realize which record is to charge and which one is to credit.

Types of Copy Book or Journal:

There are two types of the journal:

General Journal:

General Journal is one in which a small business entity records all the day to day business transactions

Special Journal:

In the case of big business houses, the journal classifies into different books called special Day books. Transactions record in these special Day books based on their nature. These books also know as subsidiary books. It includes cash book, purchase day book, sales day book, bills receivable book, bills payable book, return inward book, return outward book, and journal proper.

The Daybook proper uses for entering infrequent transactions such as opening entries, closing entries, and rectification entries.

Characteristics or Highlights or Features of Copy Book or Journal in Accounting:

The first step of the accounting process is to maintain a journal or journalizing of transactions. Journal has the following features:
- Journal is the main effective advance of the twofold section framework. An exchange records most importantly in the journal. So the Daybook knows as the book of the original section.
- An exchange record around the same time it happens. Along these lines, the journal calls Day Book.
- Exchanges record sequentially, So, the journal knows as an ordered book
- For every exchange, the names of the two concerned records demonstrating which charges and which credits, are obviously written in two back to back lines. This makes record posting simple. That is the reason the Day Book designates “Partner to Ledger” or “auxiliary book”
- The portrayal composes beneath every section.
- The sum writes in the last two segments – the charge sum in the charge section and the credit sum in the credit segment.
From the definitions and its recording procedures, the following features of the journal mark:

Book of essential passage:

The primary phase of the bookkeeping cycle is to keep up a Day Book. Exchanges first record in the Daybook. That is the reason the Day Book knows as the fundamental book of records.

Day by day record book:

Not long after the event and recognizable proof of exchanges, these record in the Day Book in sequential order of dates. Since exchanges record on the day co-event in the Day Book, it knows as a day by a daily record book.

Sequential order:

Everyday exchanges record in a Day Book in sequential order of dates. For this explanation, the Daybook likewise calls an order book of records.

Utilization of double parts of exchanges:

According to the standards of the twofold passage framework, each exchange records in a Daybook in double viewpoints, for example, charging one record and crediting the other record.

Utilization of clarification:

Journal passage of each exchange trails by clarification or portrayal since clarifications of sections fill the need for future reference.

Various segments:

Each page of the journal separates into five segments: Date, account titles and clarification, record folio, charge cash section, and credit cash segment.

An equivalent measure of cash:

For the journal section of every exchange, a similar measure of cash writes in charge of cash and credit cash segments.

Auxiliary book:

Journalizing the exchange helps the planning of the record helpfully. That is the reason the Day Book knows as an auxiliary book to the record.

Utilization of various journal books:

Journal implies a general daybook. Be that as it may, considering size-nature and volume of exchanges daybooks sub-separate into numerous classes. For instance; Purchase daybook deals daybook, buy return daybook, deals return daybook, money receipt Journal, money payment daybook dry daybook appropriate. The employments of the Day Book resolve thinking about the need of the organization.

Copy Book or Journal: Meaning, Advantages, and Futures; Image from Pixabay.

The Utility or Advantages or Benefits of the Copy Book or Journal:

The following advantages or benefits below are;

An essential book of the original section:

As the principal recording of exchange is done in the daybook, it knows as the book of the original section or prime passage. All business exchanges first discover a spot in quite a while and afterward, just the record in isolated record accounts.

A central book following the twofold passage bookkeeping:

In the wake of deciding the specific record to charge and credit, every exchange independently record. If we don’t open daybooks in an endeavor, the odds of keeping up books of records, according to the standards of the twofold section framework are far off.

Exchanges in sequential order:

All the exchanges record in the daybook in sequential order. In this way, the odds of discarding any exchanges in the books of records are dainty.

Complete information about business exchanges:

All journal passages support with brief portrayals. These portrayals help to comprehend the importance and motivation behind the exchange in future dates.

Grouping of all exchanges gets simpler:

All journal passages depend on vouchers and record in the journal as and when they happen. Thus, the exchanges are ordering immediately when they happen.

Aides in the division of labor:

In a huge business, a journal sub-separate into more than one. This sub-division assists with recording one sort of exchange in that book. For instance, deals book records just credit deals and buy book records just credit buys. These sub-journals took care of and constrained by various and separate people. In such cases, normally, that individual procures ability which causes the endeavor to accomplish its shared objective productively and adequately.

Guarantees arithmetical precision:

In the journal, the complete of the charge segment and credit segment should coordinate and concur. The difference is a speedy sign of the responsibility of certain errors, which can handily recognize and amended.

Limitations or disadvantages of Copy Book or Journal:

The following disadvantages or limitations below are;

Massive and voluminous:

Journal is the principal book of original passage which records all business exchanges. Now and again, it turns out to be so cumbersome and voluminous that it can’t be taken care of without any problem.

Information in the dispersed form:

In this book, all information records in routine and dispersed form; thus it is hard to find a specific exchange except if one recollects the date of the event of that exchange.

Tedious:

In contrast to posting from auxiliary books, posting the exchanges from daybook to record accounts take an excessive amount of time because each time one needs to post the exchanges in various record accounts.

Absence of interior control:

Dissimilar to different books of original sections like auxiliary books and money books, the daybook doesn’t encourage inner control, because the journal just exchanges record in sequential order. Be that as it may, auxiliary books and money book gives an away from of the unique sort of exchanges recorded in that.
November 24, 2020
Entrepreneurial Ecosystem: Meaning, Definition, and Features

Explore the concept of entrepreneurial ecosystems and their impact on business success and economic development globally. Entrepreneurial Ecosystem: The entrepreneurial ecosystem or environment is the accumulation of every one of those outer conditions and impacts, which influence the everyday routine of experiencing creatures and advancing business. A business venture can address holes in financial development, strength, and different proportions of prosperity in countries around the globe. However, moving from a needs-based business venture in the informal economy to opportunity-based firm creation can be intense; particularly in developing business sector economies. What’s more, the environment or ecosystem wherein a business visionary is working, legitimately and by implication, influences entrepreneurial achievement and effect.

Entrepreneurial Ecosystem understands by their Meaning, Definition, Features, and Areas.

What is an Entrepreneurial Ecosystem or Environment (In Hindi)? The entrepreneurial ecosystem characterizes as a network that makes different factors free from one another; which collaborates with themselves in a geological region and advance. The intention is to advance the making of new organizations.

As references before, the Entrepreneurial Ecosystem is a mix of social, monetary, social, and political segments inside a district. Further, an improved Entrepreneurial Ecosystem makes with the assistance of different components to support; and, create which is useful to develop the business new companies that are being started.

Likewise, recently entered Entrepreneurs are enlivened to accept the danger just as start looking for some financing for their recently evolved ventures. Inside the neighborhood environment of businesspeople; every one of these substances connects and making their performance formally just as informally. Hence, the whole framework can work together; and, the communication between these subsystems must be done in a way that can achieve the rationale.

Meaning of Entrepreneurial Ecosystem or Environment:

Which means of Entrepreneurial Ecosystem or Environment; Encouraging business is presently the core competency of financial improvement in different city’s around the globe. The entrepreneurial ecosystem makes of different partners who are from the private and public areas. They additionally involve individual and aggregate partners and strategies quantify that correctly characterize and receive to improve their enunciation, activity, and advancement.

The essential goal here is to advance business venture, make the monetary turn of events, and upgrade esteem creation. There are various ways to deal with characterizing ecosystems: high human resources capability, favorable culture, open business sectors, monetary framework, administration and strategy measures, and so on.

Definition of Entrepreneurial Ecosystem or Environment:

Entrepreneurial success, as well as impact, directly or indirectly gives effect by the environment or ecosystem in which it is operating its own build company or business. Their definitions below are;

According to Mason & Brown;

“The entrepreneurial ecosystem is a set of different individuals who can be potential or existing entrepreneurs, organizations that support entrepreneurship that can be businesses, venture capitalist, business angels, and banks, as well as institutions like universities, public sector agencies, and the entrepreneurial processes that occur inside the ecosystem such as the business birth rate, the number of high potential growth firms, the serial entrepreneurs and their entrepreneurial ambition.”

According to Stam & Spigel;

“The entrepreneurial ecosystem improvement created by the different elements generates support to develop and help to grow the startups that are building up. As well, new entrepreneurs encourage to risk and start looking for funding for their projects.”

The entrepreneurial ecosystem or environment defines as a community that makes multiple factors independent from each other; which interact with themselves in a geographical area and evolve. The purpose is to promote the creation of new businesses.

Characteristics or Attributes or Features of an Entrepreneurial Ecosystem or Environment:

As we as a whole know, the Entrepreneurship Ecosystem greatly affects the development of the business and makes it simple to make some finance from different foundations. All these super-adventure social orders are useful and help a venture to encourage their business and work with some open just as private sector pioneers over countless districts and countries over the world.

Therefore, let us get a fresh start of the Entrepreneurial Ecosystem and examine a portion of the attributes that give a superior comprehension of the entire idea immediately. Let us investigate these beneath.

Contains or comprises six individual areas:

Several components are important for the Entrepreneurial Ecosystem which isolates into six general areas. It incorporates culture, permitting approaches and authority, a fitting measure of account accessibility, nature of human resources, markets dependent on adventures for items; and, a wide scope of institutional just as infrastructural help.

A helpful culture, accessibility of account, empowering administration and approaches, human resources, showcases that are adventure amicable for items, and different sorts of support. It is fundamental to comprehend that each business ecosystem is exceptional. Albeit all these six spaces can utilize to depict it, each ecosystem is the aftereffect of various factors collaborating in quirky manners. Therefore, having basic spaces doesn’t really imply that all the ecosystems are equivalent.

Every Ecosystem is exceptional:

With the assistance of these six areas, we will get a portrayal of the Entrepreneurial Ecosystem and comprises six standard spaces yet these areas contain a few quantities of segments that have an elevated level of intricacy and singularity. To represent, in the year the 1970s, the Entrepreneurial Ecosystem of Israel created with no characteristic assets, military basics, and a long way from the significant market of their items.

Moreover, the ecosystem of Ireland developed with free training, worldwide multinationals, local English; and the European market’s vicinity in the year 1970s. On the off chance that discussing the Entrepreneurial Ecosystem of China, at that point, it is creating with regards to different strategies dependent on areas and an extremist political framework.

Variety in the entrepreneurial ecosystem:

Variety is an essential piece of advancement. Different data sources are required for the business venture from different individuals who start organizations. The culture requires, which supports various networks and various ventures with various thoughts. At the point when different portfolio speculation happens, it must appear to perform the best.

Lawful Framework:

Factors, for example, schooling, capital business sectors, regulatory and legitimate framework sway business venture for quite a while. In any case, even though these factors sway for quite a while, they are powerless. At the point when numerous factors work together, critical changes happen in a business venture, which sees now and again.

It takes a couple of distinctive individuals to cause a huge change. Therefore, while it is useful to survey every business ecosystem, small mining conventional parts are not helpful.

The ability which encourages the organizations to develop:

A large portion of the entrepreneurial ecosystem is ability magnets. They require drawing in, holding, and reliably developing ability in their organization. This likewise incorporates business visionaries and possible managers. There are considerable cross-linkages between colleges, schools, and the private sector. This is fundamentally done with the goal that the gracefully and interest for ability are overseen effectively.

Ability is fundamental in developing the business, and what’s more important is to hold it. The commercial center is developing quickly, and fast improvement is occurring all over. Organizations who were never into advanced advertising are currently searching for content scholars; and, web-based media supervisors after COVID-19 (Coronavirus disease). In such cases, holding existing ability ends up being more affordable than getting new ability.

Information and assets to help business visionaries:

There are different information and assets which are needed by business visionaries. It might incorporate fundamental inquiries like how to get my export permit to major methodology changes and the executive’s changes.

When there is a flourishing ecosystem, it winds up profiting the business visionaries. There are different assets required by business visionaries like capital, gifted individuals, space for office, and other expert administrations. In an ideal entrepreneurial ecosystem, these are richly accessible.

Entrances and convergences:

Entrances develop networks by getting more ability. They cultivate variety and permit various cooperations, which lead to novel thoughts. At the point when solid ecosystems are noticeable and have well-coming entrances, they make the ecosystem simple to get to. This is valid for anybody regardless of their experience or experience. At the point when thoughts, individuals, and assets blend, it causes convergences that help the business people locate the missing bits of the riddle.

Good fortune is to design in the ecosystems so impacts can occur, which can assist with taking care of issues. These crossing points can be foundations, for example, cafés or occasions, for example, pitch rivalries or meetups. Nowadays online crossing points are filling in prominence by a leeway channel or Twitter hashtag. This empowers business people to impart and meet a virtual network.

A collaboration which brings about brilliant social capital:

Ecosystems flourish because of different societies. An ecosystem’s way of life is wealthy in social capital, social trust, and different factors that encourage coordination and participation among the individuals of the entrepreneurial ecosystem. An ecosystem that doesn’t have an appropriate culture doesn’t develop or motivate individuals to move rapidly.

It is likewise not open to clever thoughts and causes one another, subsequent in an undesirable ecosystem. The people group culture requires to sustain and develop so it prompts great qualities in the ecosystem. This happens when individuals take part in the way of life and normally get adjusted to it.

Entrepreneurial ecosystems are generally self-continuing:

This happens because achievement brings and breeds achievement. The six spaces referenced above ought to improve in the ecosystem, and there comes a tipping moment that the administration association ought to decrease yet not dispensed with.

When the entirety of the areas are solid, at that point they commonly increment and improve. In such cases, public pioneers don’t put resources into them a great deal. Ordinarily, business venture programs are intended to act naturally exchanging so they can zero in on having an economical environment.

Social-financial environment:

The entrepreneurial ecosystem additionally considers a social-monetary environment that shapes and cultivates business ventures locally and territorially. It does as such by thinking about it as a monetary advancement technique.

At the point when this framework utilizes, the center is to create an area and worth expansion and worth creation. Many vital participants adjust to the entrepreneurial attitude and related exercises. It is typically an aggregate system used to learn by utilizing the way to deal with creative opportunities and resources.

Key areas of the Entrepreneurial Ecosystem or Environment:

On this planet, everything is a piece of an ecosystem, for example, the watershed, the creepy crawlies, the trees, the grass, and the business that is running or out and about of development. With the development of your business, the expression “Entrepreneurial Ecosystem” suits best with it and it has six major spaces. A lot of models for the Ecosystem are there however we just think about these six as an establishment and here, we will improve comprehension of these areas.

The six spaces incorporate arrangement, culture, supports, human resources, account, and markets. Every one of these spaces shows that there is a change from customary financial intuition to a creative and new monetary individuals’ view, networks, just as establishments. Cooperation between these spaces of the ecosystem is additionally a sort of Entrepreneurial movement. This result views as the cycle in which the individual transforms the opportunities into innovativeness and development. One small step at a time, another incentive to the general public gives through the improvement of new items and administrations.

Along these lines, let us start with the six major areas of the Entrepreneurial Ecosystem that should remember while working any kind of business.

Strategy Area:

Over the different regions of the world, the mainstays of government guidelines assort, and each approach of the public authority can liven up or downsize the capacities to begin, and the development of the business. Under this area, it has different components, for example, the simple advance to begin a business, motivation on assessments, and laws that could be cordial with the business.

As like that, this space likewise incorporates the actual structure, where there is admittance to the foundation, transport just as media transmission that additionally influences the organizations according to the World Economic Forum.

Account Area:

For a wide range of organizations, it is successful and profitable to have monetary stores as they can keep up development by getting more assets. A vital part of any business is the money related assets as it offers help to name individuals and to buy just as rental properties just as instruments and make interests in promoting and deals, and monitor clients.

The money related choices that are accessible with the startup of organizations likewise started with kinfolk and kith, investors, funding, private value, and obligation access. There is a positive connection between the progression of account and business development according to the World Economic Forum.

Culture Area:

It has been contended that gazing social support needs for an undertaking to build up an arising Entrepreneurial ecosystem. The resistance of danger and disappointment inside an undertaking, priority given to independent work, development festivity, examples of overcoming adversity, research societies, and good examples are the viewpoints that are consistent of enormous importance in social support as clarified by the World Economic Forum. All these make a social area.

Support Area:

An assortment of particular, establishments, just as organizations, helps the business to make and grow also. A few actors that included are mentors, specialists, experts, for example, bookkeeping, incubators, accelerators, HR, etc. (Clarified by World Economic Forum)

Human Resources Area:

The quality and the amount of the workforce are the human resources area. Because of the aptitudes and capacities that individuals have, the working environment makes accordingly. There are a few components of this space, for example, specialized and the board’s ability, the experience of an entrepreneurial organization, migrant workforce access, and the accessibility of re-appropriating. A mix of such parts influences the development of the business. Inside the space of human resources, instruction and preparation thought of.

Market Area:

The portrayal of the buyer’s readiness to purchase items just as administrations of an organization shows by the market area. Further, the capability of the shoppers considers as a key angle and there are some different parts of the market space like the public and worldwide market, little, enormous, and medium-sized organizations that are imperative to arrive at the business and develop over an area.

November 13, 2020
Activity Based Costing: Meaning, Features, and Advantages
What is ABC (activity based costing)? It is the collection of financial, operational, performance information tracing the significant activities of the firm to product costs in production management. In other words, the knowledge of find out estimates costs of production for product costs.

What does mean ABC (activity based costing)? Meaning, Definition, Features or characteristics, advantages, and disadvantages.

Activity-based costing (ABC) is a new term develop for finding out the cost. The basic feature of ABC is its focus on activities as the fundamental cost objects. It uses activities as the basis for calculating the costs of products and services. The Activity-Based Costing (ABC) is a costing system, which focuses on activities performed to produce products. ABC is the costing in which costs first trace to activities and then to products. This costing system assumes that activities are responsible for the incurrence of costs and create the demands for activities.

For example, an online learning firm prepares tax returns; suppose Udemy teaches online students. Fees charge to products based on individual product’s use of each activity. In the traditional absorption costing system, fees first trace not to activities but an organizational unit, such as a department or plant and then to products. It means under both, ABC and traditional absorption costing system the second and final stage consists of tracing fees to the course.

Activity Based Costing: Meaning, Features, and Advantages; Image from Pixabay.

Definition of ABC (activity based costing):

What is the ABC (activity based costing) definition? The following ABC definitions below;

According to CIMA as;

“Cost attribution to cost units on the basis of the benefit received from indirect activities e.g. ordering, setting up, assuring quality.”

According to CAM-1 organization of Arlinton Texas as;

“The collection of financial and operational performance information tracing the significant activities of the firm to product Costs.”

It bases on the belief that in the production process various activities give rise to costs. Generally, Activity Based Costing (ABC) defines as an accounting technique that allows an organization to determine the actual cost associated with each product and service produced by the organization without regard to the organizational structure. Amongst various benefits associated with the ABC approach, one of the major ones is that it helps to define the activities of the organization in terms of value-adding activities.

Features or Highlights or Characteristics of ABC (activity based costing):

What are the ABC (activity based costing) features or highlights or characteristics? The following ABC features below;
1. The simple traditional distinction made between fixed cost and variable cost is not enough to guide to provide quality information to design a cost system.
2. It is a two-stage product costing method that first assigns costs to activities and then allocates them to products based on each product’s consumption of activities.
3. They can use by any organization that wants a better understanding of the costs of the goods and services it provides, including manufacturing, service, and even non- profit organizations.
4. The cost pools in the two-stage approach now accumulate activity-related costs.
5. An activity is any discrete task that an organization undertakes to make or deliver a product or service.
6. It bases on the concept that products consume activities and activities to consume resources.
7. The more appropriate distinction between cost behavior patterns is scale related, scope related, decisions related, and time-related. In other words, cost behavior is all performance-related product costs.
8. Cost drivers need to identify. A cost driver is a structural determinant of cost-related activity. The logic behind this is that cost drivers dictate the cost behavior pattern. In tracing overhead cost to the product, a cost behavior pattern must understand so that appropriate cost drivers could identify.
ABC cost method is activity-based cost management:

What is activity-based cost management? Cost management is an accounting method that calculates material costs, labor costs, management costs, financial costs, etc. according to certain standards by the current accounting system.

This management approach sometimes fails to reflect the direct link between the activities undertaken and costs. Also, the ABC cost method is equivalent to a filter. It readjusts the original cost method so that people can see the direct connection between the cost consumption and the work they engage in so that people can analyze which cost inputs are effective. Which cost inputs are invalid.

The ABC (activity based costing) cost method mainly focuses on the production and operation process, strengthens operation management, focuses on specific activities and corresponding costs, and strengthens activity-based cost management.

Benefits or Merits or Advantages of ABC (activity based costing):

What are the ABC (activity based costing) benefits or merits or advantages? The following ABC advantages below;

Actual and accurate product costs:

ABC brings actual, accuracy, and reliability in product costs determination by focusing on cause and effect relationships in the incurrence of the cost. It recognizes that it is activities which cause producing costs, not products and it is a product which consumes activities. In advanced manufacturing environment and technology where support functions over-heads constitute a large share of total or overall costs, ABC provides more realistic product costs. It produces reliable and correct product cost data in case of greater diversity among the products manufactured such as low-volume products, high-volume products.

Knowledge and information regarding Cost Behavior:

It identifies the real nature of cost behavior and helps in reducing costs and identifying activities that do not add value to the product, in other words producing costs. With ABC, managers can control many fixed overhead costs by exercising more control over the activities which have caused these fixed overhead costs. This is possible since the behavior of many fixed overhead costs about activities now becomes more visible and clear.

Tracing of Activities for the Cost Object:

ABC uses multiple cost drivers, many of which transaction-based rather than product volume. Further, ABC concern with all activities within and beyond the factory to trace more overheads to the products.

Tracing of Overhead Costs:

ABC traces costs to areas of managerial responsibility, processes, customers, departments besides the product costs. Costs tracing, accurate allocation of costs to various products lead to proper pricing policy. Also, Cost driver rates can use advantageously for the design of new products or existing products as they indicate overhead costs that are likely to apply in costing the product.

Analysis and mentions of Non-manufacturing Costs:

Some costs term as non-manufacturing costs; for example, product promotion or advertisement. Even though, advertising is a non-manufacturing cost which constitutes a major portion of the total cost of any product. These non-manufacturing costs can be easily allocated since the relationship between costs; and, their causes can properly understand by using ABC.

Limitations or Demerits or Disadvantages of ABC (activity based costing):

What are the ABC (activity based costing) limitations or demerits or disadvantages? The following ABC disadvantages below;

Service costs are High:

Implementing an ABC system requires substantial resources, which is costly to maintain.

Report or data collection problem:

It is a complex system which needs a lot of record for calculations.

Non-useable for small organizations:

In small organizations, the CEO or owner or managers accustom to using traditional costing systems to run their operations and traditional costing systems often use in performance evaluations. Some companies are producing only one product or a few products; so, the ABC cannot apply in there.

Activation or selection problem:

Some difficulties emerge in the implementation of the ABC system; such as the selection of cost drivers, assignment of common costs, varying cost driver rates, etc.

Different timeline of terms:

Since there are a lot of steps and groundwork required to come out with a costing based on this system, it is quite a time to consume. For example, large companies for the best costing system they produce the large size of production and give many products to us, but small or single handle company produces and give a single product. So, the large or multinational company collects many records and ABC work easy for long-term periods, as well as small organizations for difficult in short-term periods.
May 2, 2020
Expert Systems (ES): Features, Classification, and Limitations
Expert Systems (ES): The expert system is one of the most active and extensive topics in artificial intelligence (ai) application research. In AI (artificial intelligence), It is a computer system that emulates the decision-making ability of a human expert. Since the first expert system DENDRAL was introduced at Stanford University in the United States in 1965, after 20 years of research and development, by the mid-1980s; various they have spread across various professional fields and achieved great success. Now, they are more widely used and further developed in application development.

Here explains Expert Systems (ES) in their points of meaning, Features, Classification, Development, and Limitations.

Expert systems are a component of artificial intelligence (ai); which contains a large amount of expert-level knowledge and experience in a certain field, and can use human expert knowledge and problem-solving methods to deal with problems in this field. That is to say, it is a program system with a lot of expertise and experience. Also, It uses artificial intelligence and computer technology to make inferences and judgments based on the knowledge and experience provided by one or more experts in a certain field Decision-making process to solve complex problems that require human experts to deal with.

In short, It is a computer program system that simulates human experts to solve domain problems. In 1982, the Japanese Government made an ambitious plan to build fifth-generation computers. This project aimed to use the computer for the following objectives i.e. Conversation, see objects, and adapt to new tasks; it will have memory and reasoning capabilities.

Inspiring with these projects both the US and European governments initiated and directed their resources in the direction to develop advance computer systems. Within a short period, AI and ES (Artificial Intelligence and Expert System) became the national concern as critics suggested that the Japanese were intent on dominating the information industry of the 1990s and beyond.

Features or characteristics of the expert systems (ES):

In general, the expert systems (es) has some common characteristics and advantages, and its characteristics mainly have three aspects in artificial intelligence (ai):

1] Inspiring:

They can use expert knowledge and experience to make inferences, judgments, and decisions. As well as, most of the work and knowledge in the world are non-mathematical. Only a small part of human activities are based on mathematical formulas or numerical calculations (about 8%). Even in the chemistry and physics disciplines, most of them are based on reasoning. Thinking; the same is true for biology, most medicine, and all laws. Also, thinking of enterprise management is almost entirely based on symbolic reasoning, rather than numerical calculation.

2] Transparency:

They can explain its reasoning process and answer the questions raised by the user so that the user can understand the reasoning process and improve the trust in them. For example, if a medical diagnosis expert system diagnoses a patient with pneumonia and must be treated with an antibiotic; then this expert system will explain to the patient why he has pneumonia and must be treated with an antibiotic; just like A medical expert explained the patient’s condition and treatment plan in detail.

3] Flexibility:

They can continually increase knowledge, modify the original knowledge, and continuously update. Because of this feature, they have a very wide range of applications. Also, expert systems with application ranking.

Classification of Expert System (ES):

The expert systems used in a specific field can be divided into the following classification or categories in artificial intelligence (ai):

1] Diagnosis:

Based on the observation and analysis of symptoms, deducing the cause of symptoms and troubleshooting methods, such as medical, mechanical, economic, etc.

2] Interpretation:

A type of system that interprets deep structures or internal conditions based on surface information, such as geological structure analysis, material chemical structure analysis, etc.

3] Predictive:

A type of system that predicts the future situation based on the current situation, such as weather forecast, population forecast, hydrological forecast, economic situation forecast, etc.

4] Design:

A type of system that designs products according to the given product requirements, such as architectural design, mechanical product design, etc.

5] Decision-making:

A type of them that comprehensively evaluates and optimizes feasible solutions.

6] Planning:

A type of them used to formulate action plans, such as automatic program design, military plan formulation, etc.

7] Teaching:

A type of them that can assist in teaching.

8] Mathematical:

A type of them for automatically solving certain mathematical problems.

9] Surveillance:

A type of them that monitors certain types of behavior and intervenes when necessary, such as airport surveillance, forest surveillance, etc.

Development of Expert Systems (ES):

There are indeed some limitations in the development of the current expert system. In the coming years, many of today’s expert system deficiencies will be improved. I believe that the projects that they should continue to study in the future include: As well as, the ability to deal with common sense; the development of deep inference systems; Also, the ability to explain at different levels; the ability of expert systems to learn; the distributed expert system; As well as, the ability to easily acquire and update knowledge.

The future development of they can directly receive data from the outside world through sensors, and can also obtain data from the knowledge base outside the system. In addition to inference in the inference machine, it can draw up plans and simulate problem conditions. The knowledge base contains not only static inference rules and facts, but also dynamic knowledge such as planning, classification, structural patterns, and behavior patterns.

Expert Systems (ES): Features, Classification, and Limitations, Image from Pixabay.

Advantages of the expert systems (ES):

In the past 20 years, they have developed rapidly, the application field is getting wider and wider, and the ability to solve practical problems is becoming stronger and stronger. This is determined by the excellent performance of the expert system and its important role in the national economy.

Specifically, the advantages of expert systems include the following in artificial intelligence (ai):
- They can work efficiently, accurately, thoughtfully, quickly, and tirelessly.
- It is not affected by the surrounding environment when solving practical problems, and it is impossible to miss or forget.
- It can make the expertise of the experts not limited by time and space, to promote the precious and scarce expert knowledge and experience.
- They can promote the development of various fields, enables the professional knowledge and experience of experts in various fields to be summarized and refined, and can widely and effectively spread the knowledge, experience, and ability of experts.
- They can gather and integrate the knowledge and experience of experts in multiple fields and their ability to collaborate to solve major problems. It has more profound knowledge, a richer experience, and stronger working ability.
- The level of the military expert system is one of the important symbols of a country’s national defense modernization and national defense capabilities.
- The development and application of the expert system have huge economic and social benefits.
- Research can promote the development of the entire science and technology.
Limitations of Expert Systems (ES):

Limitations, problems, and demerits of an expert systems (es) are as follows in artificial intelligence (ai):
- It is hard, even for a highly skilled expert to abstract good situational assessment when he is under time pressure.
- The expert system performs well with specific types of operational and analytical tasks.
- The designing and construction of an expert system require expert engineers, they are rare and expensive. This limitation makes an expert system very costly.
- It excels only in solving specified types of problems in a limited domain of knowledge.
- The vocabulary that experts use for expressing facts & relations is frequently limited.
- Another limitation is that most experts have no independent means of checking whether these conclusions are reasonable or not.
- The approach of each expert to the assessment of the situation may be different, yet it may be correct.
- The expert system is comparatively costly to develop and maintain.
April 8, 2020
Written Communication: Features, Advantages, and Disadvantages
Introduction to Written Communication; While speech comes to us very naturally and spontaneously, writing comes after serious practice and careful organization of thought. This article explains about Written Communication – with their important topic – Introduction, Meaning, Definition, Features, Advantages, and Disadvantages. The word “write” has been derived from the old English word “written” that meant to scratch, draw, or inscribe. It shows that man learned writing through a long process of drawing, scoring, or incising symbols on rock faces, dried skins, tree barks, and clay tablets. The alphabet of any language is, therefore, a result of evolution.

Written Communication Essay: Introduction, Meaning, Definition, Features, Advantages, and Disadvantages.

In the same way, the combination of the characters or letters of the alphabet into words, words into sentences, and sentences into paragraphs have gone through a long history of man’s attempt to communicate, and give some kind of permanence or preservation to his communication. For this purpose, every language has evolved its own rules of grammar, though many languages grouped have more or less similar rules. But, in writing these rules have to rather strictly follow.

Speech, on the other hand, is more flexible. It also does not have the permanence of writing. Unless there is a typescript or tape or simultaneously taken down notes, the speech is heard and sooner or later forgotten. Just as it is impossible to think of a social life without oral communication, it is equally impossible to think of a business or an organization without written communication. There are various reasons for it. In the first place, in an organization, people are too many to have face-to-face communication.

They are generally spread over wide geographical distances and are sometimes not even connected by telephone. The situation is changing fast. But, even then, the exchange of letters remains as important as ever. Moreover, people have to function within defined limits of authority and responsibility. In the absence of written communication, it till not be easy to determine responsibility. It is an essential part of any manager’s responsibility to communicate on paper.

Written communication is, in this way, an essential part of organizational life. Telephone, telex, fax machines have not in any way affected the importance of letters. They have only changed the mode of transmission and made the exchange of letters or memos much faster. That is why written communication including letters, memoranda, agenda, manuals, handbooks, reports, etc., continues to flourish.

Meaning and Definition of Written Communication:

A “Written Communication” means the sending of messages, orders, or instructions in writing through letters, circulars, manuals, reports, telegrams, office memos, bulletins, etc. It is a formal method of communication and is less flexible. Written communication has great significance in today’s business world.

Written Communication definition [Hindi] is; A written document preserved properly becomes a permanent record for future reference. It can also use as legal evidence. It’s time-consuming, costly, and unsuitable for confidential and emergent communication. It is an innovative activity of the mind. Effective written communication is essential for preparing worthy promotional materials for business development.

The speech came before writing. But writing is more unique and formal than speech. Effective writing involves the careful choice of words, their organization in the correct order in sentences formation as well as the cohesive composition of sentences. Also, writing is more valid and reliable than speech. But while speech is spontaneous, writing causes delay and takes time as feedback is not immediate. Written communication, to be effective, should be clear, complete, concise, correct, and courteous.

Features of Written Communication:

The following Salient features of written communication below are;
1. Written communication is essentially a creative activity. It is an activity that requires conscious and creative effort. The creativity of this effort comes from the stimuli produced by the mind.
2. The stimuli of oral communication are picked up from outside by the sensory receptors. In other words; written communication is more specifically, more carefully thought out than oral communication that base on a spontaneous reaction to signs picked up from outside.
3. As an example, let us take up the writing out of a report that we want to present or that we have been asked to write. For this purpose, we gather all the necessary information or data. We, then, process it through our logical thought processes and encode our communication.
4. This is not a face-to-face communication situation. There is no interchange of messages or external stimuli. This is almost entirely a creative activity of the mind.
Extra features;
1. The salient feature of written communication is that it has fewer cycles than face-to-face oral communication. In oral communication there are multiple exchanges of symbols, leading to multiple cycles. Most written communication is a one-cycle event.
2. Usually, a message sent and receive, and that is the end of the event. Of course, letters do lead to repeated cycles of communication exchanges. But they cannot compare with the quick succession of cycles involved in a dialogue or informal meeting.
3. It is a creative activity that requires a lot of imagination and effort to arrive at the finished product. While oral communication is spontaneous, written communication base on conscious effort.
4. Oral communication is a multiple cycle event. Oral messages get an immediate response that leads very often to further exchange of words. This is not possible in written communication. Mostly it is a one-cycle event. Written communication is the most powerful and valid communication. Why? Beaucage this communication totally can provable when need with a valid document.
Written Communication: Introduction, Meaning, Definition, Features, Advantages, and Disadvantages #Pixabay.

Advantages of written communication:

After meaning and features, Written communication has the following advantages;
1. It has the advantage of providing records, references, etc. In the absence of ready reference, great confusion may create and the working of the organization will virtually come to a halt.
2. It promotes uniformity in policy and procedure. It is the only means of laying down clear guidelines for the working of the organization.
3. They give access to a large audience through mass mailings. It is a common practice on the part of well-known organizations to reach out to people at large and win customers through wisely drafted “mailshots” or unsolicited circulars. For example, whenever a new brand of two-wheeler introduces in the market, or a bank comes forward with some attractive deposit/investment scheme it manages to get names and addresses of all the members of an institution/organization offering them their services on easy terms.
4. Maintenance of proper records, letters, reports, and memos builds up legal defenses of the organization. Organizations usually have their legal advisors who cannot be of any help unless proper record makes available to them.
More advantages:
1. Good written communication builds up the organization’s image. It is not at all surprising, therefore, that the outgoing letters/messages of certain well-known companies are cited as examples to emulate.
2. Written communication has the advantage of being accurate and unambiguous. Great care has to take in drafting any letter, memo, or report so that the message effectively conveys. Oral communication may often give rise to confusion because every speaker has his way of putting himself across.
3. The growth of an organization promotes, to a large extent, by reference to its old, well-maintained records and minutes of the meetings.
4. Written communication facilitates proper assignation of responsibilities. One may sometimes go back on words spoken, but not on his words put on paper. Moreover, the lower staff behaves more responsibly, and also feels secure, when communication is sent in writing.
Disadvantages of Written Communication:

Written communication also suffers from the following disadvantages or limitations:
1. They run the risk of becoming ineffective in the hands of people otherwise good in their job, but poor in expression. That is why it is a serious concern of a modem organization to recruit people who are very good at expression, especially in letter and report writing ability.
2. It is also a costly process. It costs a lot in terms of stationery and the number of people involved in typing and sending out letters.
3. They are mostly handicapped by their inability to get immediate feedback. Both encoding and transmission of the message take time, resulting in immediate delays. It is, therefore, a time-consuming process.
More disadvantages:
1. They have another disadvantage. Immediate clarification is not possible in exchange for written communication. If the receiver of a written message at a distance seeks some clarification, he cannot have it as quickly as he would like to. He will have to write a pack and wait for the reply to his query.
2. It creates mountains of paper cluttered around the premises of the organization. It is a common sight in offices, and the staff has a tough time trying to handle it. Very often valuable papers get lost. The managers, therefore, have to be extra careful to keep sensitive material in his custody.
3. It is time-consuming. Composing a message in writing takes much time. Writing letters, typing orders, notices, etc. and sending it to an appropriate destination requires time. The feedback process also is not instant.
4. Absence of immediate clarification. In conclusion, we can say that written communication remains the backbone of an organization; whatever be its disadvantages or limitations. Almost all formal communication is in writing.
September 7, 2019
How to we look at the current phase of globalization?
The current phase of Globalization; of course, is not a new phenomenon. The period 1870 to 1913 experiences a growing trend towards globalization. The new phase of globalization which started around mid 20th century became very widespread, more pronounced and overcharging since the late 1980s by getting more momentum from the political and economic changes that swept across the communist countries, the economic reforms in other countries, the latest multilateral trade agreement which seeks to substantially liberalize international trade and investment and the technological and communication revolutions.

Here explains the question – How to we look at the current phase of globalization?

There are several similarities and differences between the two phases of globalization.

The Human Development Report, 1999, mentioned the following as the new features of the current phase of globalization:

New Market:

They are;
- Growing global markets in services- banking, insurance, transport.
- New financial markets- deregulated, globally linked, working around the clock, with action at a distance in real-time, with new instruments as derivatives.
- Deregulation of antitrust laws and the proliferation of mergers and acquisitions.
- Global consumers market with global trends.
New Actors:

They are;
- Multinational corporations integrating their production and marketing, dominating food production.
- The World Trade Organization- the first multilateral organization with the authority to enforce national governments’ compliance with rules.
- An international criminal court system in the making.
- A booming international network of NGOs.
- Regional blocs proliferating and gaining importance- European union, Association of South-East Asian Nations, Mercosur, North American Free Trade Association, Southern Africa Development Community, among many others.
- More policy coordination groups- G-7, G-40, G-22, G-77, OECD.
New Rules and Norms:

They are;
- Market economic policies spreading around the world, with greater privatization and liberalization than in earlier decades.
- Widespread adoption of democracy as the choice of political regime.
- Human rights conventions and instruments building up in both coverage and number of signatories and growing awareness among people around the world.
- Consensus goals and action agenda for development.
- Conventions and agreements on the global environment– biodiversity, ozone layer, disposal of hazardous wastes, desertification, and climate change.
- Multilateral agreement in trade, taking on such a new agenda as environmental and social conditions.
- New multilateral agreement for services, intellectual property, communications, more binding on national governments than any previous agreements.
- The Multilateral Agreement on Investment under debate.
New (Faster and Cheaper) Tools of Communication:

They are;
- Internet and electronic communication linking many people simultaneously.
- Cellular phones.
- Fax machines
- Faster and cheaper transport by air, rail, and road.
- Computer-aided design.
Four phases of globalization:

This approach naturally leads to 4 phases of globalization.
1. First phases, consumption, and production take place together because the “hunter-gather” lifestyle meant consumption moving to “production” (i.e. food sources).
2. Second phases, consumption, and production remained together but it was because people “brought” the food to themselves by developing agriculture.
3. Third phases, were when modern globalization started in the 19th century. Steamships and railroads (and world peace called Pax Britannica) made it economical to consume goods that were made faraway. With things being made in one country and consumed in another, trade boomed.
4. Finally, the one we are in today – started when production itself got broken up and shifted around to different nations. This knows as offshoring and it radically transformed world trade and manufacturing.
The transitions between the phases – so-called “phase transitions” – were marked by world-shaping changes.

The current and as yet not concluded the fourth phase of accelerated globalization that comprises the last two decades of the 20th century, as well as the first two of the 21st, will characterize especially by the rapidly increasing globalization of the financial markets, the building of communications systems that span the globe “in real-time,” and the overcoming of a binary, ideologically motivated political bloc system.

By no means does this indicate—as the once more intensifying and often religiously-clothed contrasts between the “Occident” and the “Orient” show in all clarity—that under this we might be standing directly before a breakthrough to a unified world society, or that the borders between states have become obsolete. The number of states on our planet that have become independent is also consistently increasing.

How to we look at the current phase of globalization? #Pixabay.

Discuss of Current phase:

This also applies, of course, to other configurations between different surges in globalization. The opening of the occidental modern era onto a common space open to the future, space with which the internet age became both technologically and culturally configured during the last two decades of the 20th century, is, here again, not to comprehensively understand without consideration of those processes designated as the third phase of accelerated globalization, especially the process leading to the development of divergent modernities.

Along with globalization “from above” (especially of financial markets and capital), there appears a globalization “from below” (on the level of mass migrations and their attendant fundamental globalization critique) and even “transverse” globalization (on the level of an information and knowledge society that interconnects on a world-wide scale, the centers of which—let us not deceive ourselves—lie nonetheless in the USA and, to some extent, in Europe).

Within the parameters of this fourth phase, China, India, and perhaps Brazil have become global players that in the future will have an important say not only in political and social matters but in the realms of economics and culture as well. Indeed, China might currently find itself in a position that could compare in many respects to that of the USA within the time frame of the third phase. That the next surge in globalization, which might still expect to occur in the 21st century, should necessarily benefit English alone is, in light of the growing importance of Asian markets and powers, hardly likely.

Characteristics of the Current phase:

The characteristics of the current phase of accelerated globalization are undoubtedly quite specific, yet they are no more specific than those of the past phases, nor are they independent of them. Only when it understands that the present globalization is not something completely new, a creation ex nihilo, will we be able to draw forth the lessons of the preceding phases of this process.

Only then is it possible for one to respond to the trailblazing and vectorizations observable since the expansion of Europe at the close of the 15th century with new paths and new forms of knowledge? Does that take the place of the dissolution of world order currently being articulated? And which could develop such models and measures as are indispensable to peaceful coexistence in diversity?

In the search for these new paths, for this other knowledge, the literature of the world—and it is from here that this work proceeds—are of inestimable value. For their knowledge is a knowledge that does not limit to particular regions of nations, but quite clearly strides beyond individual cultural areas and is constantly on the move.
August 29, 2019
Process Costing: Meaning, Characteristics, and Objectives
Process Costing is a method of costing used to ascertain the cost of a product at each process or stage of manufacture. You will be able to understand the Process Costing based on the points given to them; 1) introduction, 2) meaning of process costing, 3) definition of process costing, 4) characteristics of process costing, 5) objectives of process costing, and 6) principles of process costing. In this method, the costs of materials, wages and overheads are accumulated for each process separately, for a gives period, and then carrying forward cumulatively from one process to the next process till the last process complete.

This article explains the topic of Process Costing: Introduction, Meaning, Definition, Characteristics, Objectives, and Principles.

Process costing is probably the most widely used method of cost ascertainment. Records are also maintaining to account for process losses. These losses may be normal or abnormal. Separate accounting is done for normal and abnormal losses, opening and closing work-in-progress and inter-process profits, if any. This method of costing used in those industries where mass production of identical units undertakes continuously and finish products are subject to several production stages call processes before completion.

The system of process costing is suitable for industries involving continuous production of the same product or products through the same process or set of processes. It is in use in the plant producing paper, rubber products, medicines, chemical products. It is also very much common in flour mill, bottling companies, canning plants, breweries, etc.

Meaning of Process Costing:

They refer to a method of accumulating the cost of production by the process. It uses in mass production industries producing standard products like steel, sugar, chemicals, oil, etc. In all such industries, goods produced are identical and all factory processes are standardizing. Output in such industries consists of like units and every unit of the product undergoes a similar operation in the process.

So it implies that the same cost of material, labor and overhead charges to each unit of the production process. Under this method, costing an individual unit is impossible. It so-calls because under process costing cost of the product ascertain process-wise.

They also know as “Continuous Costing” because industries that adopt process costing undertake the production of goods continuously. They also know as “Average Costing” because the cost per unit of each process ascertains by averaging the expenditure incurred on that process during a period by the number of units produced in that process during the period.

Definition of Process Costing:

After their meaning, Process Costing defines by different scholars as under:

According to Wheldon,

“Process costing is a method of costing used to ascertain the cost of the product at each process, operation or stage of manufacture.”

According to the Institute of Cost and Management Accountants, London,

“Process costing is that form of operation costing which applies where standardized goods are produced.”

Characteristics or Features of Process Costing:

It is that aspect of operation costing which uses to ascertain the cost of the product at each process or stage of manufacture. Where processes are carrying on having one or more of the following characteristics of Process costing:
- Production over having a continuous flow of identical products except. Where plant and machinery are shut-down for repairs, etc.
- Clearly defined process cost centers and the accumulation of all costs (materials, labor, and overheads) by the cost centers.
- The maintenance of accurate records of units and part units produced and cost incurred by each process.
- The finished product of one process becomes the raw materials of the next process or operation and so on until the final product obtains.
- Avoidable and unavoidable losses usually arise at different stages of manufacture for various reasons. Treatment of normal and abnormal losses or gains is to study in this method of costing.
Extra characteristics:
- Sometimes goods are transferring from one process to another process, not at cost price but transfer price just to compare this with the market price and to have a check on the inefficiency and losses occurring in a particular process. The elimination of the profit elements from stock is to learn in this method of costing.
- To obtain accurate average costs, it is necessary to measure the production at various stages of manufacture. As all the input units may not convert into finish goods; some may be in progress. The calculation of effective units is to learn in this method of costing.
- Different products with or without by-products are simultaneously producing at one or more stages or processes of manufacture. The valuation of by-products and apportionment of the joint cost before the point of separation is an important aspect of this method of costing. In certain industries, by-products may require further processing before they can sell.
- The main product of one firm may be a by-product of another firm and in certain circumstances. It may be available in the market at prices which are lower than the cost to the first-mentioned firm. It is essential, therefore, that this cost knows so that advantages can take of these market conditions.
- The output is uniform and all units are identical during one or more processes. So the cost per unit of production can ascertain only by averaging the expenditure incurred during a particular period.
Process Costing: Meaning, Characteristics, and Objectives, #Pixabay.

Objectives of Process Costing:

How do you know what cost you need? If you know the total cost of production of each process. The following are the main objectives of process costing:
1. To Ascertain the Cost of Each Process: It is necessary to know the cost at every stage of production and this fulfills by the process costing method. On this basis, management can decide concerning the make or buy the required commodities.
2. To Ascertain the Cost of Bye-Product: Bye-product is that which obtains with the main product in the course of the production. For example; while producing mustard oil, the cake also obtains. Which terms as bye-product and the cost of which is necessary to know the actual cost of the main product? Cost of bye-product ascertains by preparing bye-product Account, under process costing.
3. To Know the Wastage in Each Process of Production: During the courage of production, different wastages, such as; loss in weight, normal wastage, and abnormal wastage, etc. may arise. Management of any concern may know about these wastages by Process Costing Account.
4. To Ascertain the Profit or Loss of Each Process: The output or the part of output at the stage of every process can sell out either at profit or loss. Thus the management can know about the profit or loss at every process by preparing Processes Account.
5. The base of the Valuation of Opening and Closing Stock of Each Next Process: If the total cost of production of any process divides by the number of units, we get the cost of production per unit of that particular process and on this basis opening and closing stock of next process value.
Principles of Process Costing:

The essential stages in principles of process costing are:

The factory divide into several processes and an account maintains for each process. Each Process Account debit with material cost, labor cost, direct expenses, and overheads allocate or apportion to the process.

The output of a process transfer to the next process in the sequence. In other words, the finished output of one process becomes input (materials) of the next process. The production records of each process are keeping in such a way as to show. The quantity of production and the wastage and scrap and the cost of production of each process for each period.

Extra things:
- In some cases, the whole output of one process not transfers to the next process. A part of the output may transfer to the next process. And, a certain portion of the output may sell in semi-finish form or may keep in stock and transfer to Process Stock Account. If the output of any process sells at a profit in semi-finish form. Then profit on that particular sale will show on the debit side of that concerning profit, as profit on goods sale or transfer.
- In case there is loss or wastage of units in any process. The loss has to born by the good units produced in that process and as a result. The average cost per unit increases to that extent. It may note that, if there is loss or wastage in any process, the quantity of loss or wastage should enter on the credit side of the concerned Process Account in the quantity column. In case the wastage has some scrap value. It should appear on the credit side of the concerned Process Account in the value column against the entry for wastage. But, if the scrap value of the wastage does not specifically give in the problem. It should take as nil.
The total cost of production of each process for a particular period divided by the number of units produced in that process during that period. And, the average cost per unit of production for a period obtain. The finished output of the last process transfer to the Finish Goods Account.
August 13, 2019
Utility Analysis; Meaning, Definition, Features, and Concept
Understand utility analysis and its significance in consumer behavior. Learn about cardinal utility, its assumptions, features, and concept. Utility Analysis; The Cardinal Approach or Utility Analysis to the theory of consumer behavior is based upon the concept of utility. This article is to explain Utility Analysis Meaning, Definition, Assumptions, Features, and Concept. It assumes that utility is capable of measurement. It can add, subtract, multiply, and so on. Cardinal utility analysis is the oldest theory of demand which provides an explanation of consumer’s demand for a product and derives the law of demand which establishes an inverse relationship between price and quantity demanded of a product.

Utility Analysis or Cardinal Approach; Meaning, Definition, Assumptions, Features, and Concept.

Recently, cardinal utility approach to the theory of demand has been subjected to severe criticisms and as a result, some alternative theories, namely, Indifference Curve Analysis, Samuelson’s Revealed Preference Theory, and Hicks’ Logical Weak Ordering Theory have been propounded.

According to this approach, the utility can be measured in cardinal numbers, like 1,2,3,4, etc. Fisher has used the term “Util” as a measure of utility. Thus in terms of cardinal approach, it can be said that one gets from a cup of tea 5 utils, from a cup of coffee 10 utils, and a Rasgulla 15 utils worth of utility.

Meaning and definition of Utility Analysis:

The term utility in Economics is used to denote that quality in a good or service by which our wants are satisfied. In, other words utility is defined as the want satisfying power of a commodity.

According to Mrs. Robinson,

“Utility is the quality of commodities that makes individuals want to buy them.”

According to Hibdon,

“Utility is the quality of a good to satisfy a want.”

Assumptions of Utility Analysis:

Cardinal utility analysis of demand is based upon certain important assumptions. Before explaining how cardinal utility analysis explains consumer’s equilibrium regarding the demand for a good, it is essential to describe the basic assumptions on which the whole utility analysis rests. As we shall see later, cardinal utility analysis has been criticized because of its unrealistic assumptions.

The utility analysis is based on a set of following assumptions:
- The utility analysis is based on the cardinal concept which assumes that utility is measurable and additive like weights and lengths of goods.
- Cardinal or Utility is measurable in terms of money.
- The marginal utility of money is assumed to be constant
- The consumer is rational who measures, calculates, chooses and compares the utilities of different units of the various commodities and aims at the maximization of utility.
- He has full knowledge of the availability of commodities and their technical qualities.
- He possesses perfect knowledge of the choice of commodities open to him and his choices are certain.
- They know the exact prices of various commodities and their utilities are not influencing by variations in their prices.
- There are no substitutes.
Features of Utility Analysis:

The utility analysis has the following main features;
- Subjective.
- Relative.
- Usefulness, and.
- Morality.
Now, explain each one;

The utility is Subjective:

The utility is subjective because it deals with the mental satisfaction of a man. A commodity may have different utility for different persons. Cigarette has utility for a smoker but for a person who does not smoke, the cigarette has no utility. Utility, therefore, is subjective.

The utility is Relative:

The utility of a good never remains the same. It varies with time and place. The fan has utility in the summer but not during the winter season.

Utility and usefulness:

A commodity having utility need not be useful. Cigarette and liquor are harmful to health, but if they satisfy the want of an addict then they have utility for him.

Utility and Morality:

The utility is independent of morality. Use of liquor or opium may not be proper from the moral point of views. But as these intoxicants satisfy wants of the drunkards and opium eaters, they have utility for them.

Concept of Utility Analysis:

There are three concepts of utility analysis;
1. Initial.
2. Total, and.
3. Marginal.
Now, explain them;

Initial Utility:

The utility derived from the first unit of a commodity calls initial utility. Utility derived from the first piece of bread calls initial utility. Thus, the initial utility is the utility obtained from the consumption of the first unit of a commodity. It is always positive.

Total Utility:

Total utility is the sum of utility derived from different units of a commodity consumed by a household.

According to Leftwitch,

“Total utility refers to the entire amount of satisfaction obtained from consuming various quantities of a commodity.”

Supposing a consumer four units of apple. If the consumer gets 10 utils from the consumption of first apple, 8 utils from the second, 6 utils from third, and 4 utils from the fourth apple, then the total utility will be 10+8+6+4 = 28.

Accordingly, the total utility can calculate as:

TU = MU₁ + MU₂ + MU₃ + + MU_n

or

TU = EMU

Here TU = Total utility and MU₁, MU₂, MU₃, + MU_n =

The Marginal Utility derived from the first, second, third………………….and nth unit.

Marginal Utility:

The Marginal Utility is the utility derived from the additional unit of a commodity consumed. The change that takes place in the total utility by the consumption of an additional unit of a commodity calls marginal utility.

According to Chapman,

“Marginal utility is the addition made to total utility by consuming one more unit of commodity.”

Supposing a consumer gets 10 utils from the consumption of one mango and 18 utils from two mangoes, then. the marginal utility of second .mango will be 18-10=8 utils.

The marginal utility can measure with the help of the following formula MU_nth = TU_n – TU_n-1

Here;
- MU_nth = Marginal utility of nth unit.
- TU_n = Total utility of “n” units, and.
- TU_n-1 = Total utility of n-1 units.
Types of Marginal utility:

The following marginal utility can be; positive marginal utility, zero marginal utility, or negative marginal utility.
1. Positive: If by consuming additional units of a commodity, total utility goes on increasing, marginal utility will be positive.
2. Zero: If the consumption of an additional unit of a commodity causes no change in total utility, the marginal utility will be zero.
3. Negative: If the consumption of an additional unit of a commodity causes falls in total utility, the marginal utility will be negative.
August 5, 2019
Monopoly; Introduction, Meaning, Concept, and Features
Understanding Monopoly: Explore the concept of monopoly and its impact on markets. Learn how a single seller dominates an industry and affects prices. Introduction; Monopoly is defined as a single seller or credit in the market. The monopoly refers to a market situation in which there is only one seller of a particular product. This means that the firm itself is the industry and the firm’s product has no close substitute. The monopolist is not bothered about the reaction of rival firms since it has no rival. So the demand curve faced by the monopoly firm is the same as the industry demand curve.

Here are economics explain Monopoly; Introduction, Meaning, Concept, and Features.

Three features characterize a monopoly — a market in which there is only one supplier. First, the firm is in it’s in motivated by profits. Secondly, it stands alone and barriers prevent new firms from entering the industry; and thirdly, the actions of the monopolist itself affect the market price of its output—it is not a price-taker.

Can there be a complete monopoly in the real commercial world? Some economists feel that by maintaining some barriers to entry a firm can act as the single seller of a product in a particular industry. Others feel that all products compete for the limited budget of the consumer. Therefore, no firm, even if it is the only seller of a particular product, is free from competition from the sellers of other products. Thus complete monopoly does not exist in reality.

The monopolist is the sole seller of a particular product. Therefore, if the monopolist is to enjoy excess profit in the long run that must exist certain barriers to the entry of new firms into the industry. Such barriers may refer to any force which prevents rival firms (competing producers) from entering the industry.

What is the Meaning of the term Monopoly?

Monopoly is said to exist when one firm is the sole producer or seller of a product which has no close substitutes. Three points are worth noting in this definition. First, there must be a single producer or seller of a product if there is to be a monopoly. This single producer may be in the form of an individual owner or a single partnership or a joint-stock company.

If many producers are producing a product, either perfect competition or monopolistic competition will prevail depending upon whether the product is homogeneous or differential. On the other hand, when there are few producers or sellers of a product, oligopoly is said to exist. If then there is to be a monopoly, there must be one firm in the industry. Even literally monopoly means one seller.

“Mono” means one and “Poly” means the seller. Thus monopoly means one seller or one producer. But to say that monopoly means one seller or producer is not enough. A second condition which is essential for a firm to be called monopolistic is that no close substitutes for the product of that monopolistic firm should be available in the market.

Meaning of Monopoly:

The word monopoly has been deriving from the combination of two words i.e., “Mono” and “Poly”. Mono refers to a single and poly to control. In this way, the monopoly refers to a market situation in which there is only one seller of a commodity. There are no close substitutes for the commodity it produces and there are barriers to entry. The single producer may be in the form of an individual owner or a single partnership or a joint-stock company.

In other words, under a monopoly, there is no difference between firm and industry. The monopolist has full control over the supply of the commodity. Having control over the supply of the commodity he possesses the market power to set the price. Thus, as a single seller, the monopolist may be a king without a crown. If there is to be a monopoly, the cross elasticity of demand between the product of the monopolist and the product of any other seller must be very small.

Definition of Monopoly:

The following definitions are below;
1. According to Bilas as;
“Pure monopoly is represented by a market situation in which there is a single seller of a product for which there are no substitutes; this single seller is unaffected by and does not affect the prices and outputs of other products sold in the economy.”

2. According to Koutsoyiannis as;

“Monopoly is a market situation in which there is a single seller. There are no close substitutes of the commodity it produces, there are barriers to entry.”

3. According to A. J. Braff as;

“Under pure monopoly, there is a single seller in the market. The monopolist demand is market demand. The monopolist is a price-maker. Pure monopoly suggests no substitute situation.”

Concept of Monopoly:

Analysis of the working of a competitive system was the main task done by classical economists such as Adam Smith, David Ricardo, and J.S. Mill. Considering the earlier views, later economists of the 19th century developed the “ideal” system of perfect competition. Many economists, since the time of Adam Smith, were more interested in theoretical perfections than in the actual development of the capitalist system. They tried to explain the meaning of an economic system based on the model of perfect competition.

According to them, perfect competition would mean;
- Production at the minimum possible cost, and.
- Consumer satisfaction at its maximum.
But in real words, we hardly come across such a system of perfect competition. The exception to perfect competition which attracted serious attention during the 19th century was the concept of monopoly. This is in fact, the antithesis of perfect competition.

Monopoly market is one in which there is only one seller of the product having no close substitutes. The cross elasticity of demand for a monopolized product is either zero or negative. There being only one firm, producing that product, there is no difference between the firm and industry in case of monopoly. Monopoly is a price maker, not the price taker.

In the words of Koutsoyiannis, “Monopoly is a market situation in which there is a single seller, there are no close substitutes for the commodity it produced there are barriers to entry of other firms”.

Features of Monopoly:

The following are the features of a monopoly;

One seller of the product.

In the case of a monopoly, there is only one seller of the product. He may be a sole proprietor or a partnership firm or a joint stock company or a state enterprise. There is no difference between firm and industry. The firm is a price maker and not a price taker.

No close substitute.

The commodity which the monopolist produces has no close substitutes. Lack of substitutes means no other firm in the market is producing the same type of commodity.

Restriction no entry of the new firm.

There are powerful restrictions to the entry of new firms in the industry, under the Monopoly. There are either natural or artificial restrictions on the entry of firms into the industry, even when the firm is making abnormal profits.

Monopoly is also an Industry.

Under monopoly, there is only one firm which constitutes the industry. Difference between firm and industry comes to an end.

Price Maker.

Under monopoly, the monopolist has full control over the supply of the commodity. But due to a large number of buyers, the demand of any one buyer constitutes an infinitely small part of the total demand. Therefore, buyers have to pay the price fixed by the monopolist.

Monopoly explain – For instance;

There is one firm in India which produces “Binaca” toothpaste but this firm cannot be called monopolist since there are many other firms which produce close substitutes of Binaca toothpaste such as Colgate, Promise, Forhans, Meclean, etc. These various brands of toothpaste compete with each other in the market and the producer of any one of them cannot say to have a monopoly.

Prof. Bober rightly remarks,

“The privilege of being the only seller of a product does not by itself make one a monopolist in the sense of possessing the power to set the price. As one seller, he may be a king without a crown.”

We can express the second condition of monopoly in terms of cross elasticity of demand also. Cross elasticity of demand shows a change in the demand for a good as a result of the change in the price of another good. Therefore, if there is to be monopoly the cross elasticity of demand between the product of the monopolist and the product of any other producer must be very small. The fact that there is one firm under monopoly means that other firms for one reason or other are prohibiting to enter the monopolistic industry.

In other words, strong barriers to the entry of firms exist wherever there is one firm having sole control over the production of a commodity. The barriers which prevent the firms to enter the industry may be economic in nature or else of institutional and artificial nature. In the case of monopoly, barriers are so strong that prevent the entry of all firms except the one which is already in the field.
July 14, 2019