Financial management
This query is : Resolved
13 December 2013
how can inflation rate be different for cash inflows and outflows? like, for cost it is 7% & for revenue it is 10% how this happens please explain.
13 December 2013
Dear Mohil,
it depends on the mix. expenses can have a different product mix facing lower inflation whereas revenues can have a different mix.
Even the normal inflation rate declared by govt, has different components facing different price increase.
it depends on the mix. expenses can have a different product mix facing lower inflation whereas revenues can have a different mix.
Even the normal inflation rate declared by govt, has different components facing different price increase.
13 December 2013
can u tell me link or a site where i can get a detailed explanation for this?
because i don't get it
because i don't get it
13 December 2013
ok take an example: if the input is coal where the price rise is 7% and the output is electricity where the increase in tariff is 10%, then the inflation on expense shall be 7% and inflation in revenue shall be 10%.
I hope this suffice. If not, google it!
I hope this suffice. If not, google it!
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