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The two main objectives are:
To get at a single value: Measures of central value, by considering the mass of data in one single value, enable us to get a bird's-eye view of the entire data. Thus one value can represent thousands, lakh and even millions of values. For example, it is impossible and is hardly of any use to remember the incomes of individual companies in a particular industry. But if the average income is obtained by dividing the total income by the number of companies, we get one single value that represents the entire industry.
To facilitate comparison: Reducing the mass of data to one single figure facilitates comparisons. Comparison can be made either at a point of time or over a period of time. For example, we can compare the average annual profits of different industries for a particular year, say, 20x3-x4 and thereby conclude which industry is the best or we can compare the growth percentage in sales of a particular industry for different time periods and thereby conclude as to whether the results are improving or deteriorating. Such comparisons are of immense help in framing suitable and timely policies.
State what is Average cost Average cost represents weighted average of the costs of each source of fundsemployed by enterprise, weights being the relative share of each source
What is accumulated depreciation? Depreciation is the provision of an asset's initial cost over time. Accumulated depreciation is the sum of all the depreciation expense that
Q. Compute the economic order quantity? TNG has a current order size of 50000 units Average number of orders per year = demand/order size = 255380/50000 = 5·11 orders Ann
A debt obligation that is issued and traded both in the US bond market and the Eurobond market is referred to as global bond. For an entity to issue global bonds,
RWE Enterprises is a small manufacturer in Adelaide South Australia, feed suppliments for cattle. New production line NPV, Payback period and discounted payback period
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What is the market risk premium in Spain at the present moment - the number which I have to use in the valuations? It is not possible to talk of "the" market premium for Spain.
Government securities are the most important and unique financial instruments in the financial markets of any economy. Government of India Securities (GOI Sec) in
Determine The key factor affecting financing Costs Because cost of capital is measured under the assumption that both firm's asset structure and its capital (financial) structu
How do financial managers calculate the average tax rate? Average tax rates are computed by dividing tax dollars paid by earnings before taxes (EBT).
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