Main benefits or advantages of human resource management (HRM) can be expressed as follows:
1. Improves Performance
Human resource management is concerned with the proper utilization of human resource in the organization. It follows the principle of "the right man for the right job" according to the skill and knowledge...
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Main benefits or advantages of cost volume profit (CVP) analysis can be studied as follows:
1. Decision Making
CVP analysis helps the management to make sound decision regarding distribution channel, make or buy decision, pricing, production method etc. by showing the relationship between cost, volume and profit.
2....
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Benefits Or Advantages Of Absorption Costing System
The main advantages of absorption costing system can be studied as follows:
1. Fair Pricing
Absorption costing covers both variable costs and fixed costs while determining the cost of unit of a product. So, it is suitable method to determine the fair price of product...
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Major drawbacks or disadvantages of inadequate working capital can be highlighted as follows:
1. Lack Of Solvency
Inadequate working capital creates problem for making payment of salary, wages and short-term liabilities of a firm. It weakens the solvency position of the company.
2. Liquidity Problem
A firm cannot...
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Main benefits or advantages of maintaining adequate level of working capital can be explained as follows:
1. Maintains Solvency
Adequate working capital ensures smooth operation of business activities without interruption. Because enough working capital strengthens the solvency position of the firm.
2. Maintains Goodwill
Maintaining...
Advantages Of Internal Rate Of Return (IRR)
Main benefits or advantages of internal rate of return (IRR) method of evaluating investment proposals can be expressed as follows:
1. Use Of Time Value Of Money
One of the main advantages of IRR is that, it considers time value or future earning capacity of money. Therefore...