Difference between Fixed and Variable Costs

Let’s take a look at some of the main differences between fixed and variable costs:
Criteria Fixed Costs Variable Costs
Meaning
A cost that stays the same, regardless of the output produced.
A cost that changes when the output changes.
Nature
Time related.
Volume related.
Incurred
Incurred irrespective of units being produced.
Incurred only when units are produced.
Unit cost
Inversely proportional to the number of units produced.
Remains the same, per unit.
Examples
Depreciation, rent, salary, insurance, tax etc.
Material consumed, wages, commission on sales, packing


When trying to determine whether a cost is fixed or variable, simply ask the following question: Will the particular cost change if the company stopped its production activities? If the answer is no, then it is a fixed cost. If the answer is yes, then it is probably a variable cost.
Difference between Fixed and Variable Costs
5.3.3 Costs: Fixed Vs. Variable: What are Fixed and Variable Costs
Tips

Opening a Bank Account

Opening a bank account is quite a simple process. Take a look at the steps to open an account of your own:
Step 1: Fill in the Account Opening Form
This form requires you to provide the following information:
• Personal details (name, address, phone number, date of birth, gender, occupation, address)
• Method of receiving your account statement (hard copy/email)
• Details of your initial deposit (cash/cheque)
• Manner of operating your account (online/mobile banking/traditional via cheque, slip books) Ensure that you sign wherever required on the form.
Opening a Bank Account
5.3.2 Types of Bank Accounts, Opening a Bank Account: Types of Bank Accounts


Step 2: Affix your Photograph
Stick a recent photograph of yourself in the allotted space on the form.
Step 3: Provide your Know Your Customer (KYC) Details
KYC is a process that helps banks verify the identity and address of their customers. To open an account, every individual needs to submit certain approved documents with respect to photo identity (ID) and address proof. Some Officially Valid Documents (OVDs) are:
• Passport
• Driving License
• Voters’ Identity Card
• PAN Card
• UIDAI (Aadhaar) Card
Step 4: Submit All your Documents
Submit the completed Account Opening Form and KYC documents. Then wait until the forms are processed and your account has been opened!


Select the right type of account.
• Fill in complete nomination details.
• Ask about fees.
• Understand the rules.
• Check for online banking – it’s convenient!
• Keep an eye on your bank balance.


Costs: Fixed Vs. Variable: What are Fixed and Variable Costs


Fixed costs and variable costs together make up a company’s total cost. These are the two
types of costs that companies have to bear when producing goods and services.
A fixed cost does not change with the volume of goods or services a company produces. It always remains the same.
A variable cost, on the other hand, increases and decreases depending on the volume of goods and services produced. In other words, it varies with the amount produced

Types of Bank Accounts, Opening a Bank Account: Types of Bank Accounts

In India, banks offer four main types of bank accounts. These are:
• Current Accounts
• Savings Accounts
• Recurring Deposit Accounts
• Fixed Deposit Accounts
Current Accounts
Current accounts offer the most liquid deposits and thus, are best suited for businessmen and companies. As these accounts are not meant for investments and savings, there is no imposed limit on the number or amount of transactions that can be made on any given day. Current account holders are not paid any interest on the amounts held in their accounts. They are charged for certain services offered on such accounts.
Savings Accounts
Savings accounts are meant to promote savings, and are therefore the number one choice for salaried individuals, pensioners and students. While there is no restriction on the number and amount of deposits made, there are usually restrictions on the number and amount of withdrawals. Savings account holders are paid interest on their savings.
Recurring Deposit Accounts
Recurring Deposit accounts, also called RD accounts, are the accounts of choice for those who want to save an amount every month, but are unable to invest a large sum at one time. Such account holders deposit a small, fixed amount every month for a pre-determined period (minimum 6 months). Defaulting on a monthly payment results in the account holder being charged a penalty amount. The total amount is repaid with interest at the end of the specified period.
Fixed Deposit Accounts
Fixed Deposit accounts, also called FD accounts, are ideal for those who wish to deposit their savings for a long term in return for a high rate of interest. The rate of interest offered depends on the amount deposited and the time period, and also differs from bank to bank. In the case of an FD, a certain amount of money is deposited by the account holder for a fixed period of time. The money can be withdrawn when the period expires. If necessary, the depositor can break the fixed deposit prematurely. However, this usually attracts a penalty amount which also differs from bank to bank.

Personal Finance: Why to Save: Importance of Saving

Personal Finance: Why to Save: Importance of Saving


We all know that the future is unpredictable. You never know what will happen tomorrow, next week or next year. That’s why saving money steadily through the years is so important. Saving money will help improve your financial situation over time. But more importantly, knowing that you have money stashed away for an emergency will give you peace of mind. Saving money also opens the door to many more options and possibilities.

Benefits of Savings


Inculcating the habit of saving leads to a vast number of benefits. Saving helps you:
• Become financially independent: When you have enough money saved up to feel secure you can start making your choices, from taking a vacation whenever you want, to switching careers or starting your own business.
• Invest in yourself through education: Through saving, you can earn enough to pay up for courses that will add to your professional experience and ultimately result in higher paying jobs.
• Get out of debt: Once you have saved enough as a reserve fund, you can use your savings to pay off debts like loans or bills that have accumulated over time.
• Be prepared for surprise expenses: Having money saved enables you to pay for unforeseen expenses like sudden car or house repairs, without feeling financially stressed.
• Pay for emergencies: Saving helps you deal with emergencies like sudden health issues or emergency trips without feeling financially burdened.


Afford large purchases and achieve major goals: Saving diligently makes it possible to place down payments towards major purchases and goals, like buying a home or a car.
• Retire: The money you have saved over the years will keep you comfortable when you no longer have the income you would get from your job.



Break your spending habit. Try not spending on one expensive item per week, and put the money that you would have spent into your savings.
• Decide that you will not buy anything on certain days or weeks and stick to your word.

Types of E-Commerce

E-commerce is the buying or selling of goods and services, or the transmitting of money or data, electronically on the internet. E-Commerce is the short form for “electronic commerce.”

Some examples of e-commerce are:
• Online shopping • Electronic payments
• Online auctions • Internet banking
• Online ticketing


Types of E-Commerce

E-commerce can be classified based on the types of participants in the transaction. The main types of e-commerce are:
• Business to Business (B2B): Both the transacting parties are businesses.
• Business to Consumer (B2C): Businesses sell electronically to end-consumers.
• Consumer to Consumer (C2C): Consumers come together to buy, sell or trade items to other consumers.
• Consumer-to-Business (C2B): Consumers make products or services available for purchase to companies looking for exactly those services or products.
• Business-to-Administration (B2A): Online transactions conducted between companies and public administration.
• Consumer-to-Administration (C2A): Online transactions conducted between individuals


Benefits of E-Commerce


The e-commerce business provides some benefits for retailers and customers.
Benefits for retailers:
• Establishes an online presence
• Reduces operational costs by removing overhead costs
• Increases brand awareness through the use of good keywords
• Increases sales by removing geographical and time constraints
Benefits for customers:
• Offers a wider range of choice than any physical store
• Enables goods and services to be purchased from remote locations
• Enables consumers to perform price comparisons



Digital India Campaign

Prime Minister Narendra Modi launched the Digital India campaign in 2015, with the objective of offering every citizen of India access to digital services, knowledge and information. The campaign aims to improve the country’s online infrastructure and increase internet connectivity, thus boosting the e-commerce industry.
Currently, the majority of online transactions come from tier 2 and tier 3 cities. Once the Digital India campaign is in place, the government will deliver services through mobile connectivity, which will help deliver internet to remote corners of the country. This will help the e-commerce market to enter India’s tier 4 towns and rural areas.



Commerce Activity


Choose a product or service that you want to sell online. Write a brief note explaining how you will use existing e-commerce platforms, or create a new e-commerce platform, to sell your product or service.



Before launching your e-commerce platform, test everything.
• Pay close and personal attention to your social media.



At the end of this unit, you will be able to:
1. Discuss the importance of saving money
2. Discuss the benefits of saving money
3. Discuss the main types of bank accounts
4. Describe the process of opening a bank account
5. Differentiate between fixed and variable costs
6. Describe the main types of investment options
7. Describe the different types of insurance products
8. Describe the different types of taxes
9. Discuss the uses of online banking
10. Discuss the main types of electronic funds transfers

Office and Email: About M.S.Office

Office and Email: About M.S.Office

MS Office or Microsoft Office is a suite of computer programs developed by Microsoft. Although meant for all users, it offers different versions that cater specifically to students, home users and business users. All the programs are compatible with both, Windows and Macintosh

Some of the most popular and universally used MS Office applications are:
• Microsoft Word: Allows users to type text and add images to a document.
• Microsoft Excel: Allows users to enter data into a spreadsheet and create calculations and graphs.
• Microsoft PowerPoint: Allows users to add text, pictures and media and create slideshows and presentations.
• Microsoft Outlook: Allows users to send and receive email.
• Microsoft OneNote: Allows users to make drawings and notes with the feel of a pen on paper.
• Microsoft Access: Allows users to store data over many tables.

Why Choose Microsoft Outlook

A popular email management choice especially in the workplace, Microsoft Outlook also includes an address book, notebook, web browser and calendar. Some major benefits of this program are:
• Integrated search function: You can use keywords to search for data across all Outlook programs.
• Enhanced security: Your email is safe from hackers, junk mail and phishing website email.
• Email syncing: Sync your mail with your calendar, contact list, notes in OneNote and…your phone!
• Offline access to email: No Internet? No problem! Write emails offline and send them when you’re connected again.

Press Ctrl+R as a shortcut method to reply to email.
• Set your desktop notifications only for very important emails.
• Flag messages quickly by selecting messages and hitting the Insert key.
• Save frequently sent emails as a template to reuse again and again.
• Conveniently save important emails as files.
Most Popular MS Office Products
Why Choose Microsoft Outlook
5.2.2 M.S. Office and Email: About M.S.Office
Tips

E-Commerce: What is E-Commerce?
E-commerce is the buying or selling of goods and services, or the transmitting of money or data, electronically on the internet. E-Commerce is the short form for “electronic commerce.”

Some examples of e-commerce are:
• Online shopping • Electronic payments
• Online auctions • Internet banking

• Online ticketing

Types of E-Commerce