NTA UGC NET/JRF Exam, June 2020 Commerce (Evening-Shift)

Process costing- Process costing is an accounting methodology used when there is mass production of similar products, where the cost associated with individual units of output cannot be differentiated from each other.

Under this concept, costs are calculated over a fixed period of time, summarized, and then allocated to all the units produced during that period of time on a consistent basis.

Process costing is the only reasonable approach in many industries to determine product costs.

Examples of industries where this type of production occurs include oil refining, food production and chemical processing.

Banks are required to consider credit risk, market risk, and functional risk for capital adequacy ratio (CAR). is the ratio of a banks capital to its risk-bearing assets and current liabilities. It is also known as; the capital to risk assets ratio.

Phillar of Basel-III accord:
Pillar-1- Enhanced minimum capital and liquidity requirements.
Pillar-2 - Enhanced supervisory review process of firm-wide risk management and capital planning.
Pillar-3 - Enhanced risk disclosure and market discipline.

A shutdown point is a concept in managerial economics that suggests that a business should at least stop production temporarily and close its door because its no longer profitable to sustain its operations.

The three main factor that help in determining a shutdown point of a business.
How much variable cost of operations goes into producing a good or service.
The marginal revenue received from that good or service.
The type of goods and services provided by the firm.

Therefore, survey instrument used to assess| customer perception of service quality are called-
(1) SERVQUAL — (Service Quality)
(2) SERVPREF — (Service Performance)
(3) DINESERYV — (Design Services)
(4) RSQS — (Retail Service Quality Scale)

Channel conflict refers to any dispute, difference arising between two or more partners, where one partner's activity effects the business or goal accomplishment of other channel partner.

In the process of regular supply of goods in the market several intermediaries join the channel, any clash among these channel intermediaries is considered as channel conflict.
Type of channel conflict:
(i) Vertical marketing system
(ii) Horizontal marketing system
(iii) Multi-channel/hybrid marketing system.

Retail analytics focuses on providing insights related to sales, inventory, customers and of the important aspects crucial for a merchant's decision- making process. It is used to help make better choices, run a business more efficiently, and deliver improved customer service analytics.

Data Mining:- Data mining is a concept of computer science but has played a significant role in the retail industry as it helps retailers to learn the buying behaviour and pattern of their customers.

Retailers keep on collecting information about seasonal product sale transactional data, and) demographics, etc the collected data is of no use if it is not converted into useful knowledge and converting data into knowledge requires a proper mechanism.

The fisher effect:-
The fisher effect refers to the relationship between both the nominal interest rate, real interest rate and inflation expectations.
It is an economic theory described by Irving fisher in 1930.
The fisher effect states that the real interest rate equals: the nominal interest rate minus the expected rate of inflation.
i.e. real interest rate = Nominal interest rate- An expected rate inflation.
Therefore, the nominal rate is equal to a real interest rate plus an expected inflation.

Forecasting is a technique that uses historical data as inputs to make informed estimates that are predictive in determining the direction of future trends.

Cyclical Variation: are long-term movements that represent consistently recurring rises and declines in the activity.

Specification error: Specification errors means that at least one of the key features or assumptions of the models is incorrect.

Stationary in data series: refers to a process that has a property that the mean, variance, and autocorrelation structure do not change over time.

Consistency in data series: Consistency refers to the quality of fat of remaining the same at different time.

Price discrimination is a selling strategy that charge different prices for the same product or service from different customers. In price discrimination, the seller places different customers into groups based on certain attributes and then charges each group a different price.

Three factor to successfully practice price discrimination:-
1. The firm must process market power.
2. The firm must be able to recognize difference in| demand or must be able to control supply.
3. The firm must have the ability to prevent the resale of the product from one buyer to another.