What is working capital?
What is the sum of production,
State it's requiremeents
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Capital or amount required to meet the short term or day-to-day requirements for the companies operations is called working capital.
Working capital = Current Assets - Current Liabilities.
In [economics], the '''cost-of-production theory of value''' is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can comprise any of the [[factors of production]] (including labor, capital, or land) and [[Effect of taxes and subsidies on price|taxation]].
The theory makes the most sense under assumptions of [[constant returns to scale]] and the existence of just one non-produced factor of production. These are the assumptions of the so-called [non-substitution theorem] Under these assumptions, the long-run price of a commodity is equal to the sum of the cost of the inputs into that commodity, including interest charges.
Working capital = Current Assets - Current Liabilities.
In [economics], the '''cost-of-production theory of value''' is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can comprise any of the [[factors of production]] (including labor, capital, or land) and [[Effect of taxes and subsidies on price|taxation]].
The theory makes the most sense under assumptions of [[constant returns to scale]] and the existence of just one non-produced factor of production. These are the assumptions of the so-called [non-substitution theorem] Under these assumptions, the long-run price of a commodity is equal to the sum of the cost of the inputs into that commodity, including interest charges.
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