Input should be either brought back to the principal or alternatively sold from the job worker premises within
Answers
Answer:
Input should be either bought back to principal or alternatively sold…..
Explanation:
When we look at the business structure, it is obvious that your input refers to what you invest or put in your business. Now, once the input has been made by the business owner, then it is processed and finally we get what is termed as the output of any process.
During output the final is obtained and the owner is not free to make his sales in the open or selected market. After sales is made the profits are generated.
So theoretically…. Your INPUT = PRINCIPAL + Profits.
Even if you don’t make sales to generate profit, still it is expected that the output has to be equal to the input. This is important so it can again be used as principal or input.
The process of input < or = output + Profits.
Your profits = job workers salary + expenses + additional income (left with you in the bank).