[Commerce Class Notes] on Environment and Sustainable Development in India Pdf for Exam

The environment is the surrounding conditions that influence human life. It is the evaluation of the natural resources. According to the Environment Act 1986,  water, air, plants, micro-organisms, and the inter-relationship between human beings and other creatures form the environment. 

Functions of Environment

Economic activities, such as production and consumption, have added to environmental degradation. The rate of exploitation of resources has surpassed the speed of their revival, causing concern for the population. 

The environment and sustainable development projects in India are trying to overcome the problem of pollution. Students can learn about these concepts by reading through this segment and strengthen their knowledge about our environment.

What is Pollution and Its Types?

Pollution refers to those activities that harm the environment through man-made ways. It damages the purity of water, land, and air, thereby degrading the living conditions. Environment and sustainable development projects are adapting ways for healthy living, which will contain the degradation of our environment and depletion of the natural resources.

The types of pollution are as follows.

  1. Air Pollution 

The degradation caused to air quality due to the burning of waste and release of pollutants.

  1. Water Pollution 

Water resources like rivers, lakes, etc., are considerably depleted due to pollution. Humans dump wastes into the waterbodies, which makes the water undrinkable and of low quality. The use of non-renewable resources has gradually depleted these reserves and increased health issues. These issues increase the need for an introduction on environment and sustainable development in regular life.

  1. Noise Pollution 

It is caused by creating excessive noise beyond the recommended decibels.

  1. Ozone Layer Depletion 

In this phenomenon, the Earth’s ozone layer gets depleted due to the release of CFC or chlorofluorocarbon from various appliances. These compounds are chlorine compounds, which are generally found in refrigerators and air conditioners. 

  1. Land Pollution 

Our land suffers from various types of degradation caused mainly by unsuitable administration practices.

 The factors responsible for land degradation in India are as follows.

  • Deforestation

  • Shifting cultivation

  • Overuse of fuelwood and fodder

  • Forest fires and overgrazing

  • Improper dump wastage

  • Excessive extraction of groundwater 

  • Using too many pesticides and chemicals for agriculture

Due to these causes, there is an immediate need for environmental sustainability in India.

What is Environment and Sustainable Development?

The environmental problems that influence sustainable development have increased massiveley in the last few decades. Therefore, every individual must try to save the environment. The United Nations Conference on Environment and Development (UNCED) explains the environment and sustainable development introduction in India to save resources for the future generation.

Today, environment and sustainable development project improves living standards, improves nutrition, alleviates poverty, and minimises cultural and social instability. By following the features of sustainable development per capita income worldwide can be improved with population control, practical usage of resources, reliance on renewable sources, etc.

The sustainable development in India examples, and more information on these topics can be found on . It offers quality study materials and notes for exam and revision purposes. Students can avail of the online classes and solutions on these topics from . 

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[Commerce Class Notes] on Expenditure Method and Income Method Pdf for Exam

Understanding the basic concepts of income and expenditures, assets and liabilities, profit and loss are of high importance not only for the examination purposes but also for all the proper functioning of organizations and their success. hence provides you with an article that will help you understand more regarding the Expenditure Method and Income Method that will help you not only as a part of the syllabus but will also help you understand its application that will be needed in the future work environment. These concepts also govern some of the important aspects of the economy and hence if you would like to know more about the economy it is safe to say that you need to understand the basics of Expenditure Method and Income Method.

Before proceeding further, with the Expenditure and Income method of calculating national income, let us know what National Income is? 

What is National Income?

National Income is also termed as National Income at factor cost indicating a total amount of income that is earned by resources for the corresponding contribution towards labor, land, capital as well as organizational ability.

The methods of national income for computation would have to necessarily take into consideration the sum of the income accrued from production factors in the form of wages, rent, profit and interest.

The National Income Formula may Comprise:

National Income = Net National Product + Subsidies – Indirect Taxes

Or, Gross National Product – Depreciation + Subsidies – Indirect Taxes

Or, National Income = C + G + I + (X – M) + NFIA – Depreciation – Indirect Taxes + Subsidies 

[Where, 

C = Consumption

G = Government expenditure 

I = Investment

X – M = Export minus Import

NFIA = Net Factor Income from Abroad]

On dividing the National Income by population, the per capita income can be found out. The above figure shows that per capita income in 2019 has grown at the fastest rate reaching 11.1%.

The methods of national income accounting include both income and expenditure methods for calculation.

Income Method of Calculating National Income

The income method formula takes into consideration that the measurement of National Income is representative of the flow of income factor. The four elements of production in this regard include:

  1. Land (which receive rent)

  2. Labor (which receive salary/wages)

  3. Capital (which receive interest)

  4. Entrepreneurship (which receive profit in the form of remuneration)

The Formula of Income Method is:

National Income = Employees’ compensation + Net income + Operating surplus (W + R + P + I) + Net Factor Income generated from abroad

[Where,

W = Salaries and Wages

R = Rental income

P = Profit 

I = Mixed Income]

Expenditure Method of National Income

The expenditure method is one of the effective ways of national income accounting in which the measurement of the same is taken as a flow of expenditure from government consumption, net exports, and gross capital formation.

The Formula is –

National Income = C + G + I + NX

[Where,

Household consumption is represented by C

Government expenditure is represented by G

Investment expense is represented by I

Net exports are represented by NX]

If you seek to know more about methods of national income accounting, you are advised to attend our online classes. You can avail of solved questionnaires, study materials in PDF format, and a host of other resources.  

[Commerce Class Notes] on Features of Perfect Competition Pdf for Exam

A Perfect Competition is a kind of market in which the number of buyers and sellers is very large. All are occupied with buying and selling products that are homogenous and do not have any artificial restrictions. The main features of perfect competition are performed by possessing perfect knowledge of the market. 

In other words, a market is said to be perfect when the potential buyers and sellers are well aware of the prices and transactions that take place. Perfect competition is accompanied by efficient allocation of economic resources. Market structure is determined by the size and number of firms in a market. The major types of market structure include Monopoly, Monopolistic competition, Oligopoly, and Perfect Competition.

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What are the Main Features of Perfect Competition? 

The main features of perfect competition have several important characteristics. They are as follows:

  • One of the main features of perfect competition is that all producers contribute significantly to the market. Their production and supply levels do not change the curve. All of these producers are price takers. They do not influence the market. If any company or firm tries to raise its prices, the consumer would instead buy from a competitor at a lower price. 

  • The products are homogenous, and the producers enter and exit the market freely. Both the buyers and sellers have full knowledge of the market. Be it the price, utility, quality or production method of products. 

  • There are no additional transaction costs. In the long run, producers earn zero economic profits. There are no transportation costs, and absolute uniformity is maintained in the market. 

  • Another key feature of perfect competition is the perfect mobility of the products and goods. Goods should be allowed to move to places where they can be sold at the highest price. There should not be any key relationship between the sellers and buyers. The seller should not be picky while accepting the price of a commodity. 

  • The sellers and buyers must have relevant information to make rational decisions. These decisions may be related to the cost of the product or the selling price of the final product. 

What are some Additional Features of a Perfect Competition Market? 

Suppliers provide commodities based on the costing price, revenue and sales. Underdetermination of prices, there are several topics to choose from: 

A few more additional features of perfect competition are that buyers have no specific seller preferences and neither do sellers. Any kind of commodity that is offered to a seller is accepted. 

Solved Examples

1. What are some examples of Perfect Competition? 

Ans: In the real world, it is often difficult to find or explain the features of perfect competition. The key features of perfect competition are not fulfilled in most of the industries. However, some industries have come close to achieving the main features of perfect competition. 

  • Foreign exchange markets have homogenous currency. Traders have access to all different kinds of buyers and sellers. While buying currency, it often becomes easier to compare the price. 

  • Agricultural markets have several farmers selling the same products in the market. It is easier to compare prices in the market, and therefore the agricultural industry often gets close to getting the key features of perfect competition fulfilled. 

  • Internet industries explain the features of perfect competition in a better manner because the internet has made it easier to compare prices. Similarly, there have been barriers to entry to lower prices too. A good example here is, selling any product through online services such as eBay, Amazon or Flipkart are close to perfect competition. You can compare the prices from several brands and sites before deciding on one. 

Fun Facts about the Key Features of Perfect Competition

  • There is no information about failure or success in perfect competition. There are no barriers to entry or exit. 

  • The firms cannot derive any monopoly power. 

  • The single firm is referred to as a price taker. 

  • There are no additional advertisement costs because the firms have perfect knowledge of the products they produce. 

  • There is maximum efficiency.

  • In the long run, the equilibrium occurs at the output where there is productivity efficiency. 

  • Consumers get a maximum choice.

In general economics, this term of perfect competition can be easily defined as an equilibrium in the market. Perfect competition refers to the fact that every firm has an equal number of customers and an equal number of services. This means that no one is taking the lead in a particular market. 

Some of the Ideal Conditions of a Perfect Market

There are a set of Marketing conditions that idealize this competition. The following described points are very essential:

1. A Large Number of Sellers and Buyers

There should be an equal number of buyers and producers at a time. This would not influence price to a high amount. In simple words, if there is a large number of buyers who are willing to buy a particular product at a particular price and if a large number of sellers or producers are willing to produce a huge amount of products at a particular amount price, then prices are influenced only to a little extent.

2. Anti-Competitive Regulation

A perfect competition leads to full protection and regulations and the elimination of anti-competitive activity in the marketplace. 

3. Every Participant is a Price Taker

In a particular perfect competition, no participant acquires the market power to set market prices.

4. Homogeneous Products

The products contain the same attributes. One product is a better substitute for the other product. In simple terms, in this type of condition, the significant rise in the price of one product automatically influences the sale of the other product. They have similar structures and have the same amount of buyers. The qualities of goods and services have a close resemblance with each other. This in turn also provides a lot of options to the consumers.

5. Rational Buyers

In order to increase the economic utility, the buyers should increase the trade too.

6. No Barriers to Entry or Exit

The sunk costs( i.e, the costs that cannot be recovered) should be avoided fully. The entry and exit should be free of this particular factor.

7. No Externalities

The third parties should not get affected by the costs or benefits of any other parties. Perfect competition is also free of government intervention.

8. Non-Increasing Returns to Scale and no Network Effects

This particular condition ensures that the market will always contain a sufficient number of firms in the industry.

9. Perfect Factor Mobility

This particular condition ensures the free movement between different firms. This helps a lot in the long run. The factors of production should be mobile. This further helps in the stimulation of future changes in the market.

10. Perfect Information

The consumers and the buyers should be aware of all the prices of the goods and utilities they are producing or buying. The information should be transparent. This provides firms to obtain any information that would give rise to a competitive edge. 

11. Profit Maximization of Sellers

Firms prefer to sell the goods and services to places where they can have more profit. This implies that marginal costs meet the marginal revenue. 

12. Well Defined Property Rights

The particular condition ensures that what is more appropriate to be sold and what should be the rights that should be bestowed on the buyers.

13. Zero Transaction Costs

While making an exchange of goods, buyers or sellers do not incur costs.

These are some of the basic assumptions that feature the perfect competition. The points sum up all the instances if a perfect competition ever occurs, although a real market is never perfect and the term “close to perfect” or very imperfect is used.

[Commerce Class Notes] on Flow Management in Supply Chain Pdf for Exam

Supply Chain

Supply management is a critical element in understanding business operations. Supply Chain Management (SCM) is the oversight of finances, materials, and information when the movement happens from supplier to manufacturer, wholesalers, and retailers and at last reach to customers via defined procedures. Here, we will discuss all the processes among companies and within a company through the supply chain.

Supply Chain Management Flow Chart

Product flow, information flow, and finances flow are the three main flows associated with supply chain management. Check the flow diagram of the supply chain given below that describes the different stages of supply chain management.

Stages of Supply Chain Management

Product Flow – The movement of goods from the supplier to the consumer and returns and other service requirements.

Information Flow – Transferring orders and updating the state of delivery.

Finances Flow – Incorporates payment schedules, consignment, credit terms, and also title deed arrangements.

Well, companies use online platforms or SCM software for the management of the supply chain. They can customize online tools or software according to their needs. Furthermore, SCM software systems are available in two types. In addition, some software can be used both inside and outside of the company. Upstream information can be shared with suppliers, and downstream data can be shared with clients. It helps to increase cost-efficiency, improve time for marketing, and better management of resources. SCM is useful for managing resources and finance to generate more revenue as supply chain management functions are convenient. SCM is used for particular tasks like:

  • Improve overall efficiency

  • Reduce costs and generate more revenue

  • Better services for customers

  • Value chain optimization

The transformation process is the method of converting resources into services or products that consumers will buy. Well, industries need resources to trade.

Importance of Supply Chain Management in Organization

Supply chain management is not only about supply, but it also involves the primary stage of the process of product demands to product delivery and customer satisfaction. SCM includes:

  • Control of supply and demand

  • Sourcing and raw materials

  • Manufacture and assembling products

  • Warehousing and stock management

  • Inventory tracking

  • Order management

  • Distribution through multiple channels

  • Delivery of services or products

Production and Operations Management (POM) Under SCM

The production information supply chain includes many methods in different stages. The whole process of production is divided into different stages. Let us understand the different types of production methods in supply chain flow management.

Job Method

A job or task is done by a single person or a group or people (workers). Such a job can be complicated or small-scale, and it may involve low or high technology. In the job method, certain features are maintained to get the job completed successfully. The features are as follows.

Define Objectives: Clearly states the stages, dates, and milestones

Decision-making Process: Decision of tasks, labour, and resources.

Low Technology Jobs: Technology and skills are needed for low-technology jobs hence workforce is readily available. In this process, the purpose of the specific requirements of customers is fulfilled like hairdressers and tailors.

High Technology Jobs: Some jobs are complex and hence, require high-end technology and skilled management. Such jobs include better project control and management, like film productions and building construction projects.

Batch Method

In the bulk production of products, companies usually prefer the batch method. They will produce end-products in batches. The batch method involves task division and sub-parts of operations. Labourers are trained to complete specific processes, and resource management is essential to ensure the proper production equipment. Two features are imperative: Maximum utilization of equipment and skilled labour or workers. Most of the manufacturing companies adapt the batch method for bulk production.

Flow Methods

However, the batch method has some problems, especially when there is a lack of technology and skilled labourers. It is essential to manage the flow of working on completing batches one after another. The flow method eliminates problems of the batch method and ensures the continuous progress of materials and processes. The goals of the flow method are as follows.

The flow method involves quick completion of different stages of production. As soon as one particular task is completed, the next step will be initiated without any delay.

Requirements for Flow Methods to Work Well

Demand should be regular. If the market is unpredictable or irregular, the flow method ends up with only stock production. In such conditions, problems of storage and stock management will be raised. The flow method works well in standard products; if products vary, you can not get it done by the flow method. Continuous progress needs a constant supply of materials and resources. The entire process should be divided into several stages.

[Commerce Class Notes] on Frequency Distribution Pdf for Exam

Before jumping to frequency distribution, let us first understand what frequency is. Frequency refers to a measure of how often something has happened. The frequency of any observation tells you the repeated number of times a specific observation occurs in the observed data. Tables can show both qualitative and quantitative variables; qualitative variables are also known as categorical and represent different non-measurable categories like eye colour, brands, etc., while quantitative variables are numeric. 

In a frequency distribution, we use class intervals to represent a range of values in the data under consideration. The intervals are framed concerning the minimum and maximum value between certain thresholds. A major difference between a frequency distribution series and a frequency distribution table is that most often in a frequency distribution series, the x-variable is discrete numeric, whereas, in a frequency distribution table, it is used for continuous values. 

The different types of frequency distributions are ungrouped frequency distributions, grouped frequency distributions, cumulative frequency distributions, and relative frequency distributions.

Grouped Frequency Distribution: Sometimes to derive insights from an observation easily, we group them into class intervals. 

  • Calculate the maximum and minimum value of the data set

  • Divide this range by the number of groups you intend to have in your analysis

  • Segregate the data within this small sub-group basis the class width

  • Calculate the frequency of data within each group 

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Ungrouped Frequency Distribution: The ungrouped cumulative distribution is similar to grouped frequency distribution except for the fact that class intervals are not created, and values are ordered from minimum to maximum. 

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Cumulative Frequency Distribution

When you add or subtract the frequencies of all the previous class intervals to determine the frequency of a particular class interval, it results in a cumulative frequency distribution. Also, another major difference is that class intervals do not denote a range but instead represent a logical conclusion like greater than a threshold value or less than a threshold value. 

  • Calculate frequencies for every category

  • Arrange in ascending or descending order according to categories/class intervals based on whether one wants to prepare an increasing/decreasing cumulative frequency distribution

  • Total all the preceding frequencies. E.g., the second category’s frequency is calculated by the sum of the first and second category’s individual frequencies. Third is calculated by the sum of the first, second, third category’s individual frequencies 

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Relative Frequency Distribution

A relative frequency distribution is extensively used in our day-to-day statistical applications, which refers to the proportion of total observations associated with each category. It is calculated for individual class intervals by dividing them by the total observed frequencies. Relative frequencies can be written as a percentage, fraction, or decimal points. Cumulative relative frequency is the total of all preceding relative frequencies. To find the cumulative relative frequency, total all the previous relative frequencies till the current category.

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Common Representations of Frequency Distributions

The most common way in which a frequency distribution is visualised is using a bar chart. People also use pie charts for their data analysis of frequency distributions. The major advantage of these representations is that one can get a clear idea of the distribution with a glance. However, the disadvantage is that there is a chance of outliers getting lost in these representations if we are not careful. In the real world, analysts commonly use frequency distributions to identify how data is skewed and where the focus should lie on.

 

Solved Examples: 

A research was done in 20 homes in Chennai Avadi. People were asked how many bikes they own?  The results were: 1, 4, 3, 0, 5, 1, 2, 2, 1, 5, 2, 3, 2, 2, 0, 1, 2, 0, 3, 2. 

Present this data in the Frequency Distribution Table. Also, find the maximum number of homes owning the same number of bikes.

Solution: Divide the number of bikes in every home into different intervals. Every house can own either 0,1,2,3, etc. bikes. All these numbers form the rows. Now calculate the number of homes having {0,1,2,3, etc.} bikes. This is called the frequency. When you plot this in the form of a table: 

Number of Bikes

Frequency

0

3

1

4

2

6

3

3

4

2

5

2

It can be seen from the table that 6 homes have 2 bikes and a lesser number of people own other numbers of bikes. Hence the answer is 6 homes.

Did You Know?

Toyota used Frequency Distributions for its famous Assembly line manufacturing and discovery of a lean process. 

Many noted automobile manufacturers use this method to identify the root cause of machine failure. Using this method, all possible causes of the frequency of failure of each of these causes was plotted. By this, we can identify which reason is the highest contributor to machine failure, and immediate actions can be taken to resolve it.

Frequency distribution comes under the statistical branch of mathematics. It is an extremely important concept that is usually taught in earlier classes, starting from The 8th grade. It is important in the sense that it helps in organising data in a systematic manner which helps in easier analysis.

To make the learning process fun and easier the ‘s team has curated study material related to frequency distribution. This article mainly deals with the many types of frequency distribution and how we can construct a frequency distribution table. This article explains in-depth about grouped frequency distribution, and grouped frequency distribution, cumulative frequency distribution, relative frequency distribution. For students to get a good hold over the concept ’s team has also provided practice questions along with their solutions so that students can keep checking their progress and Study in a systematic manner. This article simplifies frequency distribution with the use of simple examples.

Frequency distribution covers the statistical part of mathematics. It helps in the collection, organisation, distribution, and interpretation of data. It helps to analyse and understand what a certain dataset reveals about a particular topic. It is helpful as it interprets data which is useful while conducting research or while studying a particular discipline. Tables represent both qualitative and quantitative variables; qualitative variables are also known as categorical and represent different non-measurable categories like eye colour, brands, etc., while quantitative variables are numeric.

Frequency can be defined as the number of times a certain event occurs. If in a particular research a certain number occurs more than once then we can say that its frequency happens to be more than once. After writing down the different frequencies in a table students can get a frequency distribution table. Basically, it means to lay out data in a systematic manner which is based on the number of observations. It helps to analyse and present data in a systematic manner.

In order to understand and get a clear grasp over the concept of frequency distribution students should be well informed about certain things that are used in frequency distribution such as classes, class limits, the midpoint of each class, the magnitude of a class interval, class frequency.

Data becomes extremely difficult to organise when it is present in large numbers. With the help of a frequency distribution table students or researchers can get a better understanding of the research conducted. They can interpret the data according to their needs.

[Commerce Class Notes] on Goods Sent Casually Pdf for Exam

The goods when they are sold to the customer, they are immediately treated as sales and the revenue is recognized therein. However, when the goods are sold on approval basis or return basis, then the accounting treatment will be different. The sale is then recorded only when the goods are approved by the buyer, these are the goods which are sent casually. Now we will discuss the treatment for Goods that are sent casually in our prevailing section. We will know the details about the concept vividly.

Understanding the Concept

The goods when are sent casually, include a few transactions, the goods that are sent on approval or on return basis are treated as ordinary sales by the side of the seller. In a specified time limit the goods are required to be accepted and if they are not returned then no entry will be passed in that regard. We will treat the goods as sold for which the entry is being passed before. While, if the goods are being rejected or returned or no intimation is received within the specified time limit, then the entry to reverse the sales is required to be passed.

Apart from this, if the goods are still lying with the buyer or the receiver of the goods at the end of the accounting year and the specified time limit is set to expire, then they are treated as closing stock. The entry for sales that are made earlier is cancelled and then they are recorded at the cost price. When the goods are returned by the customer after a specified time limit then no entry is passed.

Treatment for Goods Sent Casually

The journal entries for the goods that are sent casually are required to be entered to facilitate the company in a process which will be useful to them. The basic journal entries used for the recording purpose are as follows:

1. The Goods Sent on Approval

Debtors A/C………. Dr

To Sales A/C 

(bring goods that are sent on approval)

2. Goods When Accepted at the Invoice Price.

No entry.

3. When Goods are Accepted at a Price Which is Higher than the Invoice Price

Debtors A/C………… Dr

To Sales A/C 

(The difference of the sale price is recorded)

4. When Goods are Accepted at a Price Which is Lower than the Invoice Price

Sales A/C……… Dr

To Debtors A/C

(The difference in the sale price recorded)

5. Goods Which are Rejected or Returned Within the Specified Time Limit

Sales A/C………. Dr

To Debtors A/C

(Goods which are recorded as sales is now reversed)

6. The Specified Time Limit is Yet to Expire and the Goods are Lying with the Customers on Year End

Sales A/C………. Dr

To Debtors A/C

(Entry of sales made earlier and reversed at the invoice price)

7. The Goods Sent on Approval or on Return Basis as the Closing Stock

Goods sent on Approval A/C…. Dr

To Trading A/C

(Goods are sent on approval and are recorded as closing stock at cost or at market price whichever is lower)

Goods Sent on Approval Basis before (GST)

Goods Sent on Approval Basis Returned within 6 months from the GST being implemented 

The goods being sent on approval for a maximum six months before the appointed day are rejected and returned to the seller on or after the 1st July then nil tax will be payable. The goods should be returned within these six months from the appointed day

The period of 6 months is to be extended for a maximum of 2 months if only there is sufficient cause.

If the Goods Are Returned after 6 months

GST is to be paid by the person who is returning the goods, meaning the buyer after 6 months if those goods are liable to tax under the GST Act

The seller is required to pay GST on the goods returned after the 6 months.