Interview Questions Answers.ORG
Interviewer And Interviewee Guide
Interviews
Quizzes
Home
Quizzes
Interviews Finance and Accounts Interviews:Accounting And FinanceAccounting ReportsAccounting TypesAuditor InternalBalance Sheet Bank ClerkBank ReconciliationBank TellerBasic AccountingBasic Financial ManagementBudgetaryBudgetary ControlCapital MarketCapital RationingCapital StructureCapitalizationCashierCorporate FinanceCost AccountancyCost ElementDepreciation Double Entry System ExpendituresFinanceFinance GeneralFinancial AccountingFinancial AdvisorFinancial AnalysisFinancial StatementsLedgerManager FinanceMarginal CostingMaterial Cost MBA Finance PayrollProfit And LossSupervisoryUniform CostingWorking Capital Management
Copyright © 2018. All Rights Reserved
Capitalization Interview Question:
Explain Cost Theory?
Submitted by: AdministratorIn this theory the value of the company is decided by adding certain factors such as:-
(i) Cost of fixed assets i.e. Machinery, mechanical items
(ii) Working capital i.e. the capital which is required for continuous operation of the company
(iii) Cost of establishment of business promotion i.e. Expenses in doing the advertisements
These factors allow the promotion team to know the amount of capital which has to be raised to fulfill the promotion job. The true income of the company is been found out by its earning not by its investment in other states. For example if some assets becomes out of date and some idle then the earnings will fall but that fall of capital won't affect the investment made by the company in other company's business.
Submitted by: Administrator
(i) Cost of fixed assets i.e. Machinery, mechanical items
(ii) Working capital i.e. the capital which is required for continuous operation of the company
(iii) Cost of establishment of business promotion i.e. Expenses in doing the advertisements
These factors allow the promotion team to know the amount of capital which has to be raised to fulfill the promotion job. The true income of the company is been found out by its earning not by its investment in other states. For example if some assets becomes out of date and some idle then the earnings will fall but that fall of capital won't affect the investment made by the company in other company's business.
Submitted by: Administrator
Copyright 2007-2024 by Interview Questions Answers .ORG All Rights Reserved.
https://InterviewQuestionsAnswers.ORG.
https://InterviewQuestionsAnswers.ORG.