Definition: Kaizen costing is a technique of controlling the cost incurred over unproductive activities and resources which does not add any value to the organization. In simple words, it is a practical approach to solving cost-related problems to improve the overall efficiency of the organization. Kaizen costing is implemented in business organizations to manage different … [Read more...] about Kaizen Costing
Definition: A Ponzi scheme is a fraudulent game plan where a schemer proposes a false investment proposal to the public, promising risk-free high returns on their investment value by pretending to pool the accumulated funds in profitable business ideas. In reality, the money is not invested anywhere, whereas the schemer redistributes the collected amount by paying the … [Read more...] about Ponzi Scheme
Definition: E-commerce or electronic commerce is an intangible business platform which enables the individuals, business entities and companies to sell their products or services and carry out various commercial activities, through an electronic network. E-commerce has gained immense popularity among the customers who find it convenient to browse the products and services … [Read more...] about E-commerce
Cheque Truncation System (CTS)
Definition: Cheque truncation system is an arrangement which facilitates the electronic processing of a cheque with the use of Magnetic Ink Character Reader (MICR) data and the scanned image of the instrument without involving any physical exchange or movement of the financial instrument. Truncation, as we know, refers to the shortening of the process and therefore, CTS has … [Read more...] about Cheque Truncation System (CTS)
Definition: Depreciation is the partial reduction of the value of fixed (tangible) assets used to carry out business operations, resulting out of its limited life span. It is set off against the revenue generated by such consumption each year. Every asset which is of a fixed nature tends to face obsoletion and physical deterioration due to its regular use. These assets include … [Read more...] about Depreciation Methods
Definition: Corporate culture is the blend of sociability and solidarity in an organization. It can be understood as the ethics, values, perception, atmosphere, practices, attitudes and beliefs shared by the employees of a company to achieve organizational goals and objectives. For Example; Let us take the instance of a world-renowned Swedish based furniture brand 'Ikea'. … [Read more...] about Corporate Culture
Rural Marketing Strategy
Definition: A rural marketing strategy refers to the planning of adequate supply of consumer goods and agricultural input to the villages at an affordable price to fulfil the needs of the consumers residing in these rural areas. Rural markets have a high potential and can generate huge sales volume for the companies which manufacture cost-efficient products and have active … [Read more...] about Rural Marketing Strategy
Definition: Rural marketing refers to the framing and application of various marketing principles and strategies along with the marketing mix by the companies to capture the potential market and satisfy the needs of the people living in the remote areas of the country. Example: One of the prominent marketing strategy adopted was Nokia's launch of affordable mobile phones … [Read more...] about Rural Marketing
How to Calculate Break-Even Point?
Definition: A break-even point is that position where a business entity can recover its cost through the revenue it generates from the sales. Here, we can say that the company is now able to meet its expenses through its sales revenue. Break-even analysis is the means to identify the effect of variation in sales volume on the cost, revenue and profitability of a project or a … [Read more...] about How to Calculate Break-Even Point?
Definition: Break-even analysis is a tool used by the business organizations to find out the minimum number of units it needs to sell or the amount of sales revenue it has to generate for meeting up the total cost incurred. It is the initial judgement on whether the project is viable or not. Break-even analysis is an essential tool for any business. All the initial decisions … [Read more...] about Break-Even Analysis