Arvind Shrouti,Option Positive ECONOMICS OF A FIRM Arvind Shrouti,Option Positive
Explanation of the Terminologies TOTAL CAPITAL EMPLOYED = OWN CAPITAL + BARROWED CAPITAL OWN CAPITAL = SHARE CAPITAL + RESERVES & SURPLUS BORROWED CAPITAL = SECURED LOAN + UNSECURED LOAN INCOME = SALES & SERVICES + OTHER INCOME NON FACTOR EXPENDITURE = MANUFACTURING & OTHER EXPENSES EXCLUDING TOTAL EMPLOYEES COST,INTEREST & DEPRECIATION VALUE ADDITION = INCOME – NON FACTOR EXPENDITURE Arvind Shrouti,Option Positive
Some More Terminologies I LABOUR COST = TOTAL EMPLOYEE COST (i.e.. BARGAINABLE & NON-BARGAINABLE LABOUR SHARE = PERCENTAGE OF EMPLOYEE COST IN VALUE ADDITION CAPITAL SHARE = VALUE ADDITION - EMPLOYEE COST RATE OF RETURN TO CAPITAL = RATIO OF CAPITAL EMPLOYED & CAPITAL SHARE Arvind Shrouti,Option Positive
Arvind Shrouti,Option Positive Terminologies II Production OP price-output price/selling price Turn Over=Production X OP price IP price- input price-prices of all inputs Input Cost-raw material, power, admin cost etc Work Intensity=Ratio of Employment & deployment Productivity=Ratio of Out put or Production & Deployment. Arvind Shrouti,Option Positive
Arvind Shrouti,Option Positive Turnover MODEL OF ECONOMICS OF A FIRM I/P Price Capital Employed Return to Capital Value Addition Capital Share Return to Labor O/P Price Labor Share Production Employment Deployment Productivity Work Intensity Arvind Shrouti,Option Positive
Arvind Shrouti,Option Positive THANK YOU Arvind Shrouti OPTION POSITIVE Pune, INDIA Email: optionpositive@rediffmail.com Arvind Shrouti,Option Positive