Solved Board Paper For ICSE Class 10 Commercial Applications

Shut down Costs: Costs that have to be incurred even if the production or operations are temporary discontinued

Sunk Costs: These are the historical costs i.e., already been incurred in the past.

Human Resources include dynamic elements of all people at all levels in an organisation and is a wider term

Personnel are the employees working in an organisation and is a narrow term.

Marketing serves the society by providing employment opportunities. Functions like transportation, packing, distributing, etc. employ people.

Development of product involves decisions relating to branding, packaging and labelling.

Sales is the exchange of a product or service for money. It is the deliberate attempt of seller to influence a potential customer to buy the product.

Here the approach of Egor is not correct:

• According to the accounting entity concept, business should be treated as a separate unit and distinct from its owners, managers, creditors and others.
• Although A is the sole owner of the business, the personal affairs of A must be separated from business.
• In the absence of this concept, the net profits and financial position of the business cannot be known.

Banking is an activity in which loans are accepted from the public for the purpose of lending or for investment. These deposits are repayable on demand or otherwise and withdrawal is by cheque, draft, order, etc.

Promotion mix.

Promotion mix: refers to combination of promotion tools used by an organization to communicate and persuade customers to buy its products. It involves tools like advertisements, sales promotion, personal selling and public relation.

Production Concept.

• Firms realised that mere availability and low price of product could not ensure increased sale and survival of the firm.
• Emphasis of the firms shifted from quantity to quality of the product.
• Product improvement was recognised as the key to profit maximisation of a firm.

Proposes that the way to realise business goal is by making high quality products

• Recruitment is defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
• In an organisation, it is a positive step that aims at attracting number of candidates to apply for the given job. If there are higher number of people applying for a job, there will be higher possibility of getting a suitable employee.

(a) Explicit cost

(b) Implicit cost

(c) Explicit cost

(d) Implicit cost

i)Fixed costs are the ones that do not change with change in the level of output while variable cost changes with the change in the level of output.
ii) Fixed cost remains constant at all levels of output and can never be zero, while variable cost is zero with zero output.

Eco or Green Clubs are mainly formed in schools and colleges. These are voluntary groups that play an important role in creating environmental awareness, spreading environmental education for sustainable development amongst the future generation.

Sierra wants to exercise the Right to Choose. Consumer is free to choose the product required from a variety of products available at competitive prices. Marketers should offer different products in terms of quality, brand, prices, size etc.

The source of recruitment adopted is Casual Callers. It refers to database of unsolicited applicants kept by the organisations.

Receipts which do not arise from the regular business activities and are non-recurring in nature are called Capital Receipts.

Example:

1. Amount received from the sale of fixed assets or investments.
2. Amount received by way of loans.

Following are some of the considerations, which should be kept in mind while choosing a brand name:

a) The brand name should be short, easy to pronounce, spell, recognise and remember e.g Ponds, VIP, Rin, Vim, etc.

b) A brand should suggest the product’s benefits and qualities. It should be appropriate to the product’s function. e.g., Gentle, Promise and Boost.

c) A brand name should be distinctive e.g., Liril, Spirit, Safari, and Zodiac.

d) The brand name should be adaptable to packing or labelling requirements, to different advertising media and to different languages.

e) The brand name should be sufficiently versatile to accommodate new products, which are added to the product line e.g., Maggie, Colgate.

f) It should be capable of being registered and protected legally.

g) Chosen name should have staying power i.e., it should not get out of date.

Some of the consumer responsibilities are:

To be aware: Consumer should be aware of various goods and services available in the market, their price, substitutes, etc.

Ask for cash memo: A consumer shall ask for a cash memo on purchase of goods or services that will serve as a proof of the purchase. He shall assert to ensure that you get a fair deal.

To check the quality: Consumer shall buy only standardised goods. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry, etc.

Lodge complaint: A consumer shall file a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed.

Indiscriminate deforestation for fuel or for industrial use has led to many environmental problems like:

• Air pollution
• Loss of trees that protected soil from soil erosion
• Drying up of rivers quickly

All these losses forced people to take an action against deforestation and thus, resulted in ‘Chipko Movement’.

The promotion tool opted by management of FitCure for maintaining its brand image is Public Relation.

Public relations involves a variety of programmes for promoting a new product and building a company’s image.

It helps in:

• • smooth functioning of business
  • building corporate image
  • launch of a new product
  • advertising and promotion of products
  • defending products encountering public problems

Following factors should be considered before choosing the channel of distribution:

1. Product related factors:

• These include: unit value of the product, degree of complexity of the product, whether the product is an industrial or a consumer product or whether the product is perishable or non-perishable
• Industrial products are usually of high unit value and purchased by few buyers thus require shorter channels while consumer productsare standardised, less bulky and less expensive products, require long network of channels
• Perishable products require shorter channels while non-perishable products require longer channels

2. Cost related factors

• Some methods of distribution may be cheaper than others but cheaper alternative may deliver late or cause damage to the goods
• Method of distribution also depends on whether the business has its own delivery vehicles and own drivers to transport the goods

3. Competitive factors

• The type of channel is selected by the competitors in same industry. Depending on the marketing policy, the producers may opt for channels similar to that of their competitors or avoid the channels used by competitors

4. Market factors

Shorter channels are opted for small size market in terms of number of buyers as concentration of buyers in a small place leads to use of short channels. In case of small sizes of orders, longer channels or more intermediaries are opted.

Following are the elements of marketing mix :
(i) Product mix
(ii) Price mix
(iii) Promotion mix
(iv) Place or physical mix

Place or physical distribution mix refers to the activities relating to making the products available to the customers at the right place and at the right time. Physical distribution mix consists of two things; physical distribution and channels of distribution. Physical distribution includes all those activities involved in moving products or service from producer to consumer. It includes activities such as – Order processing, Transportation, warehousing, Inventory control, etc. The channels of distribution are those routes through which goods move from the producer to the ultimate consumer. These channels of distribution consist of middlemen such as wholesalers retailers, agents.

Following pricing strategies are used by companies:

1. Market skimming: It is the method of setting high price for a new or unique product in the market. It helps in profit maximisation and enables firm to recover development costs quickly.
2. Penetration pricing: It is the method of setting low price to enter into a competitive market. This attracts consumers to try the product and increases the market share of the business quickly.
3. Cost plus pricing: This price involves cost plus profit (in percentage). The price can be set by using either mark-up pricing or full-cost pricing. It ensures that cost is covered plus there is a profit on the sale of product.

Benefits to Society:

Employment:

• Personal selling offers employment opportunities to people

Creates effective demand:

• Effective demand can be known through personal selling

Feedback:

This helps in production of only required goods and services

The accountant has violated the concept of full disclosure. According to this concept, all the known facts must be disclosed to all the interested parties. As the business is required to pay damages, it must be disclosed in the financial statements.

No, it will not be right to book it as a sale because the sale is not yet completed and the customer has not accepted the delivery of goods. As per the matching concept, cost should be set out against the revenue in the period during which it has been earned.

As per the dual aspect principle, every transaction has two aspects. It affects the transaction in any of the following ways:

1. It increases an asset and decreases another asset.
2. It increases an asset as well as a liability.
3. It decreases an asset as well as a liability.
4. It increases a liability and decreases another liability.

Since every transaction affects assets and liabilities equally, assets are always equal to liabilities plus capital.

It is done as per the convention of materiality. As per this convention, the items having insignificant effect are either left out or merged with other items; otherwise, accounting statements will be unnecessarily overburdened. The amount of stationery is not shown as assets. Whatever amount of stationery is brought in an accounting period, is treated as an expense of that period, regardless of the fact that it has been consumed or not.

The amount is treated as revenue expenditure and is taken to the profit and loss account.

1. The new employees were provided induction training. Induction training is mainly related to introducing new joiners to their colleagues, organization’s structure, their role and responsibilities, health and safety procedures and facilities available such as cab or bus facility to commute.
2. Following are the demerits of external source of recruitment

• The expenditure incurred on advertisements and processing of applications makes this resource a costly affair for an organisation.
• External recruitment may lead to disappointment and frustration among the existing employees, as they may feel they have low chances of promotion.
• It is a lengthy process as an organization has to wait for people to respond after it advertises it’s vacancies through different media, hence, the recruitment becomes a time consuming process.

The type of training provided to Sheini is on-the job training.

On the job training is conducted at the workplace, where the employees are actually working. Under this training methods, the workers often sit with an experienced worker and watch them how the tasks are performed. They will then complete the task under his guidance.

On the job training methods include:

• Coaching and mentoring
• Job rotation
• Internship training
• Job instructions

The training method used by Alexa is ‘On the job training.’

It is conducted at the workplace, where employees are actually working. Under this training method, the workers often sit with an experienced worker and watch them how he performs the task. They will then complete the task under his guidance.

Merits of on the job training:

• Cost effective method- it involves low cost as no external training methods or training instructors are hired.
• Workers contribute to the output while training- the workers are trained while they are working which doesn’t reduce the output as they are working also.
• Workers learn the actual way of doing the work- with the help of experience worker, the workers are able to learn the right way of doing the task.