In this article we will discuss about:- 1. Meaning of Margin 2. Importance of the Concept of Margin 3. Special Role. Meaning of Margin: In economics, the concept of margin has a great importance. The marginal unit of anything is the unit whose small addition or subtraction is under consideration. In the language of Mayers, “The marginal unit of any [...]
The following points highlight the eight main concepts of cost. The concepts are: 1. Cost of Loan Capital 2. Cost of Equity Capital 3. Risk-Free Rate Plus Risk Premium 4. Dividend Capitalisation Approach 5. Capital Asset Pricing Model (CAPM) 6. Cost of Preference Shares 7. Cost of Retained Earnings (or Internal Equity) 8. The Composite or Overall Cost of Capital. [...]
The following points highlight the four main concepts of accounting theory. The concepts are: 1. The Concept of Transaction 2. Accounting Period Concept 3. Realisation Concept 4. Concept of Full Disclosure. 1. The Concept of Transaction: The major concept in accounting theory that appears in the same logical sequence is the concept of transaction. In its simplest form, transaction can [...]