Category: Commerce Notes PPT

The selection process can be defined as shortlisting the right candidates with the required qualifications to fill the vacancies in an organization. The process varies from company to company hence need to be understood what type of process suits accordingly.

 

The Selection Process is quite a lengthy and complex process as it involves a series of steps before making a final decision. To know more about the selection process of an organization, read the article below.

 

Selection Process Meaning

The selection process refers to selecting the right candidate with the required qualifications and capabilities to fill the vacancy in the organization. The selection process is quite a lengthy one and also complex. It involves a series of steps before the final selection. The procedure of selecting the employees may vary from industry to industry according to their own needs. Every organization designs their selection process while keeping in mind the urgency of hiring the people and the requisites for the vacancy of the job.

 

Recruitment and Selection

Recruitment is the process where the potential applicants are searched for and are encouraged to apply for a vacancy. While the selection is the process of hiring the employees from the shortlisted candidates and providing them with a job in the organization. The success of any organization depends on its employees because when an employee is well suited for their job the entire company can enjoy the benefits of their success. Recruitment and selection help organizations to choose the right candidates for the right positions in the business.

 

Steps in Selection Process

Popularly there are seven stages in the process of selection : 

1. Application – After the job opening has been announced, the candidates apply for the respective jobs which suit them.

2. Screening and Pre-selection – The goal of this second phase is to reduce the number of candidates from a large group to a manageable group of between 3-10 people that can be interviewed in person. The selection is based on their selection technique and according to the company’s needs.

3. Interview – The interview gives insight into a person’s verbal accuracy and how sociable they are. This also provides the opportunity to ask the candidate job-related queries. 

4. Assessment-The full assessment usually is more accurate as this helps the organization to check the candidate well. Assessments include work sample tests, integrity tests, and related job knowledge tests. 

5. Reference And Background Check- An essential step is the reference check, which is to confirm about the candidate. The candidates are asked to give references and he follows up on these. 

6. Decision- The next step is to decide to choose the correct candidate who promises the greatest future potentiality for the organization. 

7. Job Offer and Contract – After the decision-making process, the candidate needs to accept the offer which is known as the contract.

 

Types of Selection Process

Selection types differ according to different types of organizations. The types of the selection process are –

1. Application forms and CVs

2. Online screening and shortlisting

3. Interviews

4. Psychometric testing

5. Ability and aptitude tests

6. Personality profiling

7. Presentations

8. Group exercises

9. Assessment centers

10. References

 

Importance of Selection

Selection is an important facet for the organization, it’s importance can further be summed up as below-

1. It identifies the right candidates for the company.

2. Recruiting talented employees can help increase the overall performance of the organization.

3. Helps in avoiding false negatives and false positives of the candidates.

Above all, the process selection has all the way become more complicated. As the organizations want to hire talented and effective employees, this can create a difference in the interest of the organization, hence the organizations carefully have adopted different methods of recruiting a candidate.

Students can learn about Sources of Financing Business from this article. Sources of Financing Business is a very important topic for CBSE boards commerce. The article provided here has been written by the expert faculty of who have had a lot of experience in teaching commerce to students preparing for the CBSE boards exam.

The notes provided here on Sources of Financing Business are very concise yet exhaustive so that students can use them for many purposes. They can use the Sources of Financing Business notes for both studying the chapter and revisions.

This makes the Sources of Financing Business notes a very useful resource for students. Students can even download the Sources of Financing Business   PDF for free from the website.

Thus, the Sources of Financing Business notes will be very useful for students studying commerce.

Financial Sources

Financing entrepreneurial business from external sources is required either for the inception of the business i.e. to prove the viability of the concept (seed capital- 80%), to get the venture running (start-up capital- 60%) or for daily business operations, expansion of the business or to go public (expansion stage capital- 30-50%). There are two options or sources of financing business- equity and debt. Both serve as the sources of capital for a company. All financial sources fall under either of these two options. 

Sources of Financing Business: A Detailed Study

Understanding the Key Sources of Project Financing- 

Debt: It is cheaper since long-term interest on loans is less than the investment return of stock markets. It also offers a tax shield. However, debt requires regular repayment. Lenders are mostly conservative and require collateral. 

Equity: The various sources of finance for entrepreneurs under equity are-

1. Inside Equity (founders, family, friends),

2. Private Equity of Angels

3. Venture Capital 

4. Public Offering. 

The Various Financial Sources for a Startup are:

• Personal Investment or Personal Savings: Often, one of the first sources of project financing is the entrepreneur himself or herself. Personal investment from the entrepreneur builds his/her corporate reputation showing long-term dedication to the project.

• Venture Capital: Venture capitalists are major financial sources in the corporate world. They invest in companies promising high potential in growth with efficient teams in the management and less capacity of leverage. In this type of financing business, investors participate in the business as a clause in sheer exchange for the cash and strategies they provide. Some of the major venture capital financial sources in India are Helion Venture Partners, Accel Partners, etc.

• Assistance from Government: This comes as one of the sources of finance for entrepreneurs in the form of grants and subsidies.

• Business Angels: One of the most promising sources of funds for business comes in the form of business angels. Such are professional investors investing a part or at times the entire capital they possess along with their time on the development of innovative businesses. Estimates have revealed that the total investment by angels is equal to thrice of the venture capital.

• Financial Bootstrapping: Financial bootstrapping aims at building a business of sustainable nature with dedicated employees and the constant growth of customers without the help of any bank loan. Financial bootstrapping examples include owner financing, sweat equity, joint utilization, minimizing the payable accounts, delaying of payments, subsidy finance, minimizing inventory, among others. 

• Buyouts: A buyout process might include the selling of assets that are non-core in nature, redefining and refocusing of the organizational goal, process of streamlining, replacement of the existing management, and reddening of the product lines. Such sources of capital for a company tend to change the ownership form of a company. This can change a company’s public ownership to a private one.

• Commercial Bank Loans and Overdrafts:  One of the main sources of long-term financing comes in the form of loans from banks. In the case of bank loans, the loan tenure is specified by the financial institution along with the rate of interest, timing, and the repayment amounts. Some collateral is kept as an exchange for the provided loan. For the funding of fixed assets, loans serve as one of the most significant long-term sources of working capital.

Sources of short-term finances include overdrafts. In case the entrepreneurs face business falls with the bank balance going down below the minimal limit, overdrafts can be availed by them from the very bank as a source of assistance. Such short-term sources of working capital help in assisting the seasonal fluctuations and short-term liquidity crisis.

The rate of interest is high for overdrafts compared to bank loans. Loans from banks are however less flexible.

Sources of Long Term Financing

A list of sources of long term financing looks something like this:

• Equity shares

• Preference shares

• Profit plowing back

• Lease financing

• Foreign capital

• Term loans

• Debentures

• Financial institutions

• Debt capital

• Internal sources

Sources of Short Term Finances

A list of sources of short term finances has the following options:

• Trade credit

• Overdrafts from banks

• Secured Loans

• Commercial paper

Finally, a startup can go for public offering- the most important of all sources of money or wealth creation. It is also a type of equity and is the best option for startups looking to take off.

Why Should Students Join ?

Students can attend online classes on for their exam preparation. The expert faculty at make sure that students actually have fun while studying for their exams. The classes taken here are fully online which students can attend from the comforts of their home. They also have the flexibility of attending our classes anytime by downloading them. 

A wide range of students can access the online classes at very affordable fees. The online classes are very interactive and innovative in nature which makes it perfect for young learners to retain information in their minds. The website also has a vast question bank with questions similar to the ones that are usually asked in exams. Apart from this, students can also get revision notes, sample papers, PYQs, and online tests for their exam preparation. Students can prepare for their school exams as well as competitive exams with the help of this website. Thus, joining will be very beneficial for students.

To understand the to locate errors in the Trial Balance, we first need to understand what a Trial Balance is and what are the steps to create a trial balance, the different types of errors that could happen while maintaining the books of accounts and then the steps to locate the errors.

Meaning of Trial Balance

Trial Balance is a sheet of a statement, prepared with the debit and credit balances of ledger accounts to assess the arithmetical accuracy of the books of accounts. The purpose of preparing a trial balance is to ascertain the arithmetical accuracy of ledger accounts and to help in identifying errors.

()

Steps to Prepare a Trial Balance

Step 1: The first step is to identify the transactions. The balances of each account in the ledger book are verified. The final balance of an account is the difference between the total of the debit entries and the credit entries.

Step 2: The second step is to record each account and place its balance in the debit or credit column.

Step 3: Ascertain the total of debit balances column.

Step 4: Calculate the total of the credit balances column.

Step 5: Determine the sum of the debit balances equals the sum of credit balances. If they do not tally, it means that there are some mistakes. So, one must check the accuracy of the balances of all accounts.

Introduction to Errors

Errors are the mistakes, which are committed unintentionally while recording transactions in the books of accounts. These errors may occur in the journal, ledger or trial balance or any financial statements.

Some common errors that may happen are as follows:

1. Error might happen while totalling the debit and the credit balances in the trial balance.

2. Error in calculation of subsidiary books.

3. Error may occur in posting the total of subsidiary books.

4. Error can occur while showing account balances in the wrong column of the trial balance or any wrong amount.

5. Omission in showing an account balance in the trial balance.

6. Error while ascertaining the ledger account balance.

7. Error may happen while posting a journal entry, i.e., a journal entry may have been posted mistakenly to the ledger.

8. Error in recording a transaction in the journal by making a reverse entry, i.e., account to be debited is credited and the account to be credited is debited or an entry with the wrong amount.

9. Error while writing down a transaction in a subsidiary book with a wrong name or wrong amount.

Classification of Errors

On the basis of the nature of errors, they can be classified into the following four categories.

1. Error of Commission

When a transaction is recorded incorrectly in the books of accounts, it is called error of commission. It includes the wrong posting of transactions, wrong calculation or wrong balancing of the accounts, the wrong casting of the subsidiary books or wrong recording of the amount in the books of original entry. Errors of commission are of four kinds:

1. Error of Recording: This error occurs when any transaction is incorrectly recorded in the books of original entry. Example: goods purchased from Krishna for Rs. 450 and recorded as Rs.540 in the purchase book.

2. Error of Casting: This error occurs when a mistake is committed in total. This mistake affects the trial balance. Example: the sales book is totalled as Rs.10000 instead of Rs.100000.

3. Error of Carrying Forward: It is an error that happens when a mistake is done in carrying forward a sum of one page to the next page. This kind of error affects the trial balance.

4. Error of Posting: When the information is incorrectly entered in the ledger from the books of original entry, it is an error of posting.

2. Errors of Omission

This kind of error occurs when a transaction is partially or completely left out to be recorded in the books of accounts. These can be of two types:

1. Error of Complete Omission: When a transaction is completely left out from recording in the books of the original record, it is an error of complete omission. This error does not affect the trial balance.

2. Error of Partial Omission: When an incomplete transaction is recorded in the books, it is an error of partial omission. This error affects the trial balance.

3. Error of Principles

When a transaction is recorded in the books of accounts violating the accounting principles, i.e., the allocation between capital and revenue items, it is known as errors of principle. These errors do not affect the trial balance. These errors do not affect the trial balance.

4. Compensating Errors

When two or more than two errors cancel each other such that the debits and credits of accounts is nil, such errors are called compensating errors. These errors do not affect the tallying of trial balance.

Steps to Locate the Errors or Detection of Errors

Any difference in the trial balance, even if it is a minor mistake must be located and corrected. The following steps are taken to identify the errors:

1. Totalling the two columns of the trial balance again is a must.

2. If only one account is written instead of the number of accounts in the trial balance, then the list of such accounts should be checked and totalled again.

3. The balances of every account including cash and bank balances from a cash book should be checked whether they have been written in the right column of the trial balance.

4. The exact difference in the trial balance should be determined. The ledger should be properly checked, it is possible that a balance sheet equal to the difference has been omitted from the trial balance.

5. Balancing the ledger accounts repeatedly is a must.

6. Casting and carrying forward of Subsidiary books should be verified especially if the difference is Re1, Rs.100, etc.

7. If the difference in the total amount is big then the balance in all accounts should be compared with the equivalent accounts in the previous period.

8. Double posting of the transaction amounts should be checked. There may be chances that the posting is made on the wrong side resulting in the doubling of entry.

9. A complete check of the trial balance is essential if the difference remains.

10. If the errors are not located properly then the difference in the trial balance is temporarily transferred to a suspense account.

Rectification of Errors

Errors that affect the trial balance must be located and corrected. The process to correct the errors is called rectification of errors. The purpose to rectify errors in the trial balance is to prepare correct accounting records, ascertain accurate net profit or loss for the financial period and exhibit a correct position of the organization at a particular date by preparing a Balance Sheet.

Earlier in the 1960s, a business consultant from the US named Albert Humphrey came up with the popular technique in management known as SWOT analysis. This is abbreviated as Strength, Weakness, Opportunities and Threat analysis. It’s a technique used to detect and align the strengths, weaknesses, opportunities and threats of a project. Whether it is a start-up, an acquisition or an existing company’s project, this technique has proven to be extremely powerful. 

Earlier in the 1960s, a business consultant from the US named Albert Humphrey came up with the popular technique in management known as SWOT analysis. This is abbreviated as Strength, Weakness, Opportunities and Threat analysis. It’s a technique used to detect and align the strengths, weaknesses, opportunities and threats of a project. Whether it is a start-up, an acquisition or an existing company’s project, this technique has proven to be extremely powerful.

SWOT analysis can be performed by entrepreneurs organization leaders to project managers to analyze the business environment both internally and externally. This is generally presented in a 2X2 matrix. SWOT analysis helps you visualize everything you know and don’t know about your business. This helps the entrepreneurs or project leads to strategies and effectively plan future activities

SWOT analysis is an extended level of the planning and decision-making phases of a project or business. Hence, all the inputs must be gathered appropriately, which includes information from all departments and key personnel in the business. These inputs are taken based on the four primary elements as explained below.

Strength

Strengths are attributes that are often classified as internal as it is something that is under our control. These are the unique qualities of the business which could be tangible or intangible and yet give a certain edge to the business. Reputation, leadership qualities, knowledge, exclusive technology, etc. are things that help businesses stand out in the market and eventually become the strength of the business. It is a key factor in the business or project that helps earn goodwill and success.

For example, in a Start-up business scenario, it’s important to identify the core strength of the business idea or model. It could be knowledge, skilled resources, leadership or the unique product itself.

Weakness

These are certain drawbacks or loopholes in the business process or the product that distance you from your strength. Generally, weakness is influenced by internal factors, market competition and location and the requirement of additional assets such as money, furniture or equipment. Certain times it’s also a flaw or a small gap in the business process. These are generally self-identified or brought out after critical thinking and brainstorming.

Progressing on these strategically and logically is the next most critical step to be taken during planning the business. As it helps identify areas that require enhancement, it could be in terms of skill, knowledge, finance, technology, furniture and fixtures. It could also be in terms of market competition and the need for an ideal location to operate the business.

Opportunity

This process of analysis is based on a detailed study of the market in terms of new products, emerging products, decline of other competitors, publicity in the media and expansion options. It encourages the entrepreneur to capitalize on the new areas of improvement. It forces the entrepreneurs to look at all external factors such as new regulations or events that can bring profitability to the business. Identifying opportunities on time is very important as it also pushes the entrepreneur to plan future activities effectively. Opportunities also mean that as an entrepreneur to look at all external factors such as new regulations or events that can bring in profitability to the business. Identifying opportunities on time is very important as it also pushes the entrepreneur to plan future activities effectively.

Threat

Every business faces threats mostly from external factors or environments that we don’t have control over. It comes with various risk factors the company has to constantly work on mitigating it. These treats are capable of changing the way you do your business. New players in the market, sudden dissolution of a supplier, new technology or regulation are some of the factors that can impact the business and restrict the growth. However, identifying these treats or being aware of them plays a vital role in the company as it allows you to create alternate strategies, helps you invest wisely, etc.

Some examples of SWOT analysis matrices are given below. Companies brainstorm against each of the factors on the matrix and work on developing a business strategy around it. Based on these, companies set timelines and plan activities for the future focusing mainly on the strength area. They also look at how external factors help improve on our internal weaknesses and bring factual clarity on the objective of the business plan or project.  

Every country has their respective currencies which they use in their trade and businesses, but what about in the foreign market? With the lack of versatility of the currencies, they become a hurdle in world trade. To solve this problem, the Foreign Exchange Market was introduced. This is a type of marketplace that will fix the exchange rate for the currencies. 

Without the foreign exchange market, the world economy would suffer terribly. Thus, it becomes important for us to consider this topic as a prior study. In this context, we will define the foreign exchange market, discuss the types, features, and participants in the same market.

Define Foreign Exchange Market

()

The foreign exchange market is over a counter (OTC) global marketplace that determines the exchange rate for currencies around the world. This foreign exchange market is also known as Forex, FX, or even the currency market. The participants engaged in this market are able to buy, sell, exchange, and speculate on the currencies.

These foreign exchange markets are consisting of banks, forex dealers, commercial companies, central banks, investment management firms, hedge funds, retail forex dealers, and investors. In our prevailing section, we will widen our discussion on the ‘Foreign Exchange Market’.

Types of Foreign Exchange Market

The Foreign Exchange Market has its own varieties. We will know about the types of these markets in the section below:

The Major Foreign Exchange Markets −

• Spot Markets

• Forward Markets

• Future Markets

• Option Markets

• Swaps Markets

Let us discuss these markets briefly:

In this market, the quickest transaction of currency occurs. This foreign exchange market provides immediate payment to the buyers and the sellers as per the current exchange rate. The spot market accounts for almost one-third of all the currency exchange, and trades which usually take one or two days to settle the transactions. 

In the forward market, there are two parties which can be either two companies, two individuals, or government nodal agencies. In this type of market, there is an agreement to do a trade at some future date, at a defined price and quantity.

The future markets come with solutions to a number of problems that are being encountered in the forward markets. Future markets work on similar lines and basic philosophy as the forward markets. 

An option is a contract that allows (but is not as such required) an investor to buy or sell an instrument that is underlying like a security, ETF, or even index at a determined price over a definite period of time. Buying and selling ‘options’ are done in this type of market. 

A swap is a type of derivative contract through which two parties exchange the cash flows or the liabilities from two different financial instruments. Most swaps involve these cash flows based on a principal amount.

 

Functions of Foreign Exchange Market

The various functions of the Foreign Exchange Market are as follows: 

• Transfer Function: The basic and the most obvious function of the foreign exchange market is to transfer the funds or the foreign currencies from one country to another for settling their payments. The market basically converts one’s currency to another.

• Credit Function: The FOREX provides short-term credit to the importers in order to facilitate the smooth flow of goods and services from various countries. The importer can use his own credit to finance foreign purchases.

• Hedging Function: The third function of a foreign exchange market is to hedge the foreign exchange risks. The parties in the foreign exchange are often afraid of the fluctuations in the exchange rates, which means the price of one currency in terms of another currency. This might result in a gain or loss to the party concerned.

 

Features of Foreign Exchange Market 

This kind of exchange market does have characteristics of its own, which are required to be identified. The features of the Foreign Exchange Market are as follows:

1. High Liquidity

The foreign exchange market is the most easily liquefiable financial market in the whole world. This involves the trading of various currencies worldwide. The traders in this market are free to buy or sell the currencies anytime as per their own choice.

2. Market Transparency

There is much clarity in this market. The traders in the foreign exchange market have full access to all market data and information. This will help to monitor different countries’ currency price fluctuations through the real-time portfolio. 

3. Dynamic Market

The foreign exchange market is a dynamic market structure. In these markets, the currency values change every second and hour.

4. Operates 24 Hours

The Foreign exchange markets function 24 hours a day. This provides the traders the possibility to trade at any time. 

Who are the Participants in a Foreign Exchange Market?

• The participants in a foreign exchange market are as follows:

• Central Bank: The central bank takes care of the exchange rate of the currency of their respective country to ensure that the fluctuations happen within the desired limit and this participant keeps control over the money supply in the market.

• Commercial Banks: Commercial banks are the channel of forex transactions, which facilitates international trade and exchange to its customers. Commercial banks also provide foreign investments. 

• Traditional Users: The traditional users consist of foreign tourists, the companies who carry out business operations across the globe.

• Traders and Speculators: The traders and the speculators are the opportunity seekers who look forward to making a profit through trading on short-term market trends.

• Brokers: Brokers are considered to be the financial experts who act as a sure intermediary between the dealers and the investors by providing the best quotations.

Advantages of Foreign Exchange Market

The whole world economy is relying upon this foreign exchange market for obvious advantageous reasons. Let us check what are the advantages gained in the foreign exchange market-

• There are very few restrictive rules, this allows the investors to invest in this market freely.

• There are no central bodies or clearinghouses that head the Foreign Exchange Market. Hence, the intervention of the third party is less.

• Many investors are not required to pay any commissions while entering the Foreign Exchange Market.

• As the market is open 24 hours, the investors can trade here without any time-bound.

• The market allows easy entry and exit to the investors if they feel unstable. 

Did You know?

1. The Foreign Exchange Market is the biggest and the most liquid financial market in the whole world.

2. The foreign exchange market trades 24/5. It starts its operation on Sunday at 5 pm EST and closes its operation on Friday at 5 pm EST.

3. This market represents a $3.98 trillion value of transactions in a single day!

4. You can even have access to Foreign Exchange Market provided you have an internet connection.

5. USD (United States), EUR (EuroZone), JPY (Japan), GBP (Great Britain) – some of the major currencies of the world. 

Business organizations require enough resources for producing a set of products. The resources are limited in nature and thereby affects the production cycle. The behavior of the production cycle will change accordingly with the availability of the resources. 

In this context, we will discuss some major economic-production terms like Total Product, Average Product and Marginal Product. Understanding and analysis of these terms are important in a business, especially one which is engaged in the production line. Let us begin our content with the economic and production knowledge delight.  

Production and Cost play a Vital Role in a Business

Macroeconomics depicts the large-scale operational procedure of a business or enterprise. Moreover, both production and cost are two indispensable parts of it. Production plays a vital role in the survival of a business amid a competitive market. On the other hand, cost determines the volume of production. At large, any business aims to achieve optimum production efficiency by reducing production costs.

However, for that, one needs to know some fundamental concepts like a definition of production, total product formula, and likewise.

What is Production? 

Production is a process of converting resources into products or services.

Production Function: it studies the fundamental difference between physical input and output.

Below is its formula.

Y= F (L.K)

Here, Y= Production, L= Labour and K= Capital.

What is the Total Product?

It refers to the total amount of output that a firm produces within a given period, utilising given inputs.

Total Product Formula is

TP= AP*L

Where AP= product/ labour unit; L= Labour

Average Product 

It is output per unit of inputs of variable factors.

Average Product (AP)= Total Product (TP)/ Labour (L).

Marginal Product 

It denotes the addition of variable factors to the total product.

Thus, Marginal product= Changed output/ changed input.

In other ways, marginal product leads to an increase of total product with the help of additional workers or input.

Relationship between Total Product and Marginal Product

()

In order to derive the relation, first students need to remember the total product formula. Moreover, the law of variable proportions explains the relationship between these two. 

Marginal Product = ∑ Total Product

This law explains

TP increases at an increasing rate when MP increases. This pattern provides a Total Product Curve with a shape of convex. It then continues till MP reaches the maximum point of TP.

Where MP declines and stays positive, TP increases at a decreasing rate. This pattern provides a Total Product curve with a shape of concave after reaching a point of inflection. It continues till the TP curve reaches its maximum.

When MP is negative and declining, TP declines.

In case MP is zero, TP reaches its maximum.

Relationship between Marginal Product and Average Product

()

Just like the relationship between marginal product and total product, the connection between this two is mentioned below. 

• The marginal product remains above an average product when AP rises. 

• Similarly, MP remains below AP, in case AP declines. 

• Average product and marginal product become equal at the maximum AP.

 

Discussion of Minor Economic Terms related to Production

This refers to a period when a particular business can make alterations in variable factors to influence production. However, here the fixed factors remain the same.

In the long run, an enterprise can make any changes in all factors to attain the desired production.

Now that you get an overall idea of what is a production and different usages of the total product formula let’s proceed towards the fundamental concept of Costs.

It explains the relationship between the quantity produced and cost.

Thus, 

C= F (Qx) 

Here, C= Production –Cost and Qx= Quantity of x goods produced.

Cost of Production Cost

It refers to the cost incurred to purchase various factor inputs like land and employ labourers. This also includes the expenses of non-factor inputs like fuel, raw material, etc.

It is a total of fixed and variable costs and can be expressed as –

‘I’C= TFC+TVC

Where TFC= Total Fixed Cost

TVC= Total Variable Cost

Implicit Cost 

It covers the cost of inputs that are self-owned used in production.

It accounts for standard business costs and also directly influences the profitability of a business, for instance, lease payments, wages, etc.

These are some of the most crucial factors of this chapter that students need to learn to perform well in the examination. Understanding these concepts may seem difficult at the beginning, but with proper guidance, it will become easier to comprehend.

Thus, if you want to know more about how to derive the total product formula or any other concepts of production and costs, visit ’s website or download the app. They have some useful and informative study materials that you can consult to clear your basics.