NCERT Solutions for Class 12 Entrepreneurship Business Arithmetic
NCERT Solutions for Class 12 Entrepreneurship Business Arithmetic
NCERT Solutions for Class 12 Entrepreneurship Business Arithmetic is designed and prepared by the best teachers across India. All the important topics are covered in the exercises and each answer comes with a detailed explanation to help students understand concepts better. These NCERT solutions play a crucial role in your preparation for all exams conducted by the CBSE, including the JEE.
NCERT TEXTBOOK QUESTIONS SOLVED
1. What do you mean by Unit of Sales?Ans. Unit of sales can be defined as the measure of what products are sold.
2. What do you mean by Gross Profit?Ans. Excess of Unit Price over Unit Cost is known as the Unit Gross Profit or Unit Gross Margin. This represents the business’s profit from selling a product
or providing service before deducting fixed expenses such as salaries, rent, and other expenses.
Gross Profit = Unit Price — Unit Cost
Ans. All receipts of money is known as cash in flow 5 like rent received and loan received, and payments made in money is known as cash outflow. Ex: Insurance premium and Transprtation charges.
4. What do you understand by Unit Cost/ Variable Cost/Cost of Goods sold?Ans. Cost of unit can be defined as the cost incurred by a company to produce, store and sell one unit of sale of a particular product or service.
5. Give some examples of Variable Cost/ Unit Cost.Ans. The Unit Cost refers to the variable cost like raw-materials, packing material, sales commission, freight, etc.
6. How do we calculate the unit cost in the case of multi product or service situations? Explain with the help of an example.Ans. Grocery store is a trading business. One buys and sells. So, the cost at which the items are purchased is known as Unit Cost (just as its MRP at which you are selling). Therefore, at the end of the day, it is possible to know the purchase price of all the items and quantities that were sold. Let us suppose that it works out to Rs 1,70,000. There are 100 units of Sale. So the unit cost is Rs 1,700.
Ans. MRP is a short form of Maximum Retail Price. It is a price at which shopkeeper sells the goods to customers.
8. What are "Carrying Costs"?Ans. It is defined as the cost of holding and handling materials inside or outside the stores. It is important to examine the inventory level and to maintain optimum balance of inventory.
9. What do you mean by Order lead time?Ans. It is an average time that elapses between placing an order and receiving the goods.
10. What do you understand by Usage Rate?Ans. It is an average rate at which the inventory is drawn down over a period.
11. How Cash Flow Projection will be considered as a better idea for your business plan?Ans. As part of a business plan, Cash Flow Projection will always give an entrepreneur a much better idea, of how much capital investment a business idea needs to start and to run the business.
12. What does the acronym EBITDA stand for?Ans. Earnings Before Interest, Tax, Depreciation and Amortization.
13. What does ROE Indicate?Ans. ROE (Return On Equity) is a good indicator to know a true measure of how own money is being used.
14. What does ROI Indicate?Ans. ROI (Return On Investment) is a good indicator to know a true measure of how total money is being used. ROI, on the other hand, gives an indication of how the total money is being used.
15. How does pilferage of material affect the enterprise and entrepreneur?Ans. Pilferage of material means – theft. In any enterprises or a business theft raises your costs, lowers your profits, makes you less competitive and affects morale.