Finance

A worker is likely to gain experience, become more efficient and faster as they carry out a repeated performance of a job task. Human beings improve skills, gain experience, exposure and specialize as they repeat the performance of a particular task. This is known as the learning curve effect. A worker with the no previous experience and knowledge is untried the first time they perform a new operation. As the worker repeats the operation and becomes more familiar with it, their labor efficiency increases and their labor cost per unit decreases. After the passage of time, the regular rate of decline in cost per unit is established and used as a basis to predict future labor cost.. The learning process begins at the point the first unit comes off from the production line. And each time cumulative production is doubled, the average taken to produce a unit of cumulative production is a percentage of the average time of the previous cumulative production. What is the learning curve theory? ...

Before you invest in those stocks, it is important to know if your investment is going to yield the highest profitable returns possible in a chosen sector. The most reliable tool to test for optimal profitability is the Earnings Per Share (EPS) shareholder ratio  EPS is the most frequently used of all accounting ratios. It ia believed to give the best picture of a company's performance.  To calculate EPS, divide a company's net profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The net profit or loss attributable to ordinary shareholders is earnings after tax, minority interest and extraordinary items available for equity shareholders. Every information needed for the calculation of EPS is available in a company's financial statements.   But the EPS shouldn't be used in isolation to make an investment decision. Other factors must be considered before a final decision is reached. Don't...