Advantages And Disadvantages Of Sustainable Development | What are the four Advantages And Disadvantages Of Sustainable Development?

Advantages And Disadvantages Of Sustainable Development

Advantages And Disadvantages Of Sustainable Development: Natural resources include everything found in the environment and are considered one of the most essential sources of raw materials for man’s advancement and consumption in society. Environmental degradation and ecosystem loss have been recorded as a result of overexploitation of these resources. As a result, policies and laws are developed to safeguard it; sustainable development is one of the terms used in this scenario.

It’s a term that refers to the ability to meet society’s expectations for natural resource use by implementing a set of processes for their efficient management. With the purpose of preserving man’s and nature’s ecological equilibrium.

Sustainable development is the result of excessive exploitation of natural resources without a commitment to their availability for future generations. Lack of control over resource acquisition, damaging human practices, and polluting processes are all blamed for this. In addition to not adhering to the required regeneration timelines for the environment, such as soil, plant species, and water, to mention a few.

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What is Sustainable Development? Advantages and Disadvantages of Sustainable Development

A collection of policies adopted by governments in order to protect natural resources and ensure their acquisition in the future is known as sustainable development.

The Brundtland Report, published in 1987 and warning of the negative environmental consequences of economic growth and globalisation while also attempting to find solutions to the problems caused by industrialization and population growth, was the first to introduce the concept of sustainable development.

Many of humanity’s issues, such as climate change, water scarcity, inequality, and hunger, can only be addressed globally and via the promotion of sustainable development, which includes a commitment to social progress, environmental balance, and economic prosperity.

As part of a new sustainable development framework, the United Nations approved the 2030 Agenda, which contains the Sustainable Development Goals, a call to action to protect the planet and secure people’s worldwide well-being. To attain these common aims, individuals, organisations, governments, and countries from all around the world must collaborate.

What are17 Sustainable Goals?

The Sustainable Development Goals, also known as the Global Goals, are a call to all governments throughout the world to address the enormous challenges that humanity faces and to ensure that everyone has an equal chance to live a better life without jeopardising the health of our planet.

17 Goals for a better world are:

  • Get rid of poverty.
  • Get rid of hunger.
  • Ensuring a long and healthy life
  • Ascertain that everyone has access to basic services such as water, sanitation, and renewable electricity.
  • Encourage the creation of development opportunities through inclusive education and decent work.
  • Encourage infrastructure innovation and resiliency, resulting in communities and cities that can create and consume sustainably.
  • Reduce global inequality and notable disparities between men and women.
  • Fighting climate change and preserving ocean and land ecosystems are all examples of environmental protection.
  • Fighting climate change and preserving ocean and land ecosystems are all examples of environmental protection.
  • To promote peace and long-term development, encourage collaboration among various social actors.

Advantages of Sustainable Development

Energy-saving: Because of the sort of site where its infrastructure is placed, they are built to capture the most amount of sunlight possible, favouring ventilation in all of its corners.

Health Care: Some sustainable homes contain green areas, spas, and even a gym, promoting each individual’s health through daily exercise.

Environmentally friendly: The basic pillar on which all of this is built, and where ideas for developing the economy without jeopardising the environment take shape. It immediately affects the search for alternate, clean, and equally effective types of energy because it includes minimising the emissions of gases that produce phenomena such as acid rain or global warming.

Similarly, because human activities are responsible for a large portion of environmental degradation, adopting this ideology entails taking steps to reduce pollution, which can result in positive outcomes such as improved air quality, more green areas, the preservation of the planet’s biodiversity, the survival of more species, and so on.

Water conservation: Water-saving valves are installed in the sustainable apartments, as well as a rainwater collection system and grey water treatment, which is used for irrigation and bathroom drainage.

Disadvantages of Sustainable Development

Costs: Implementing them is costly because it entails replacing an existing energy source that already serves a portion of the population with a new one, upgrading infrastructure, and changing consumption habits, all of which can be highly costly.

Unemployment in some areas: Changes to conserve and care for ecosystems and biodiversity can force various industries to decrease their activities or, in the worst-case scenario, cease operations entirely. Many people who have spent their entire life working in a single sector, such as the coal industry, may face unemployment as a result of this.

More requirements: Companies, plants, factories, and others that have an impact on the environment would be held to higher standards, such as lowering carbon dioxide emissions and properly disposing of garbage.

Fragile commitment: Because the transition to a more environmentally friendly industry is more expensive and harder to achieve due to the factors discussed above, there is a risk that the promise made to society will be less serious.

Advantages And Disadvantages Of Sustainable Development

Comparison Table for Advantages And Disadvantages Of Sustainable Development

AdvantagesDisadvantages
Ends poverty in all its formsIt is often difficult for developing countries to plan and implement sustainable projects due to a lack of financial resources.
Ensure healthy life and well-being for allMany people may face the problem of unemployment
Achieve gender equality and empower all femalesSustainability policies face obstacles due to the duality that exists between the need for solutions and strategies that transcend national boundaries.
Provide access to water and sanitation, and manage them sustainablyIt is a costlier process

FAQs on Advantages And Disadvantages Of Sustainable Development

Question 1.
How is Sustainability different from Sustainable Development?

Answer:
The notion of sustainability is often associated with a long-term end (a more sustainable world), while sustainable development refers to a series of processes and strategies to attain it (contexts such as sustainable agriculture and forestry, sustainable production and consumption, smart government, education and training, etc.).

Question 2.
What are the main components of sustainable development?

Answer:
Sustainable development consists of three aspects: economic growth, social inclusion, and environmental protection. It is essential to balance these factors; sustainable development requires economic growth, achieving sustainable livelihoods, living in harmony with nature, and employing appropriate technology.

Question 3.
What are the sustainable development Goals of India?

Answer:
According to the Sustainable Development Goals, the most pressing issues are poverty, hunger, education, health and well-being, education, women’s empowerment, water and sanitation, energy, infrastructure, industry, and innovation as well as reducing inequalities.

Question 4.
The SDGs have been signed by how many countries?

Answer:
On the first day of the summit on sustainable development, the 193 Member States of the United Nations adopted a bold new global agenda for ending poverty by 2030 and pursuing a sustainable future.

iPhone Advantages And Disadvantages | Versions, Features, Pros and Cons of iPhone

iPhone Advantages And Disadvantages

iPhone Advantages And Disadvantages 2022: The iPhone is a smartphone created by Apple that was announced on January 9, 2007. The first showing of the iPhone was on January 29, 2007, at the Macworld Conference & Expo. The iPhone operates a touch screen, giving it features expansion to that of a formal cell phone such as an on-screen keyboard. Further, because the iPhone has a full-fledged operating system (iOS) it can drive millions of different software apps, vacant for download and possession through the Apple App Store. With relatively more storage space, the iPhone can hold a large digit of photos, videos, and ballads. Internet connectivity is delivered through cellular employment (4G LTE) and Wi-Fi.

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What is iPhone? What are the 5 Advantages and Disadvantages of an iPhone?

iPhone, a cycle of smartphones manufactured by Apple Inc., integrates mobile telephone, digital camera, music performer, and personal computing technologies. After extra than two years of development, the appliance was primarily broadcasted in the United States in 2007.

Versions of iPhone

Below is a list of iPhone interpretations with a statement of the new characteristics and their respective waiver dates:

  • iPhone 3G – The iPhone 3G was the introductory iPhone with 3G support; it was released on June 19, 2009.
  • iPhone 4 and iPhone 4s – These two iPhones were discharged on June 24, 2010, and October 14, 2011, respectively. The iPhone 4s submitted the Siri voice attendant.
  • iPhone 5 and iPhone 5s – Both phones contained a gain in screen size to 4 inches; the 5s also contained a fingerprint compilation. These two interpretations were acquitted on September 21, 2012, and September 20, 2013, respectively.
  • iPhone 5c – An interpretation of the iPhone 5 which was bought at a shorter price point. The phone headlines a plastic back rather than the traditional aluminum design. This permitted the phone to be swapped with multiple color deviations.
  • iPhone SE – Acquitted in March 2016, the iPhone SE was tinier and more reasonable than the iPhone 6. Although its inward hardware was analogous to the vaster and thinner iPhone 6S, its form factor was further like its forefather, the iPhone 5.
  • iPhone 7 and iPhone 7 Plus – The iPhone 7 saw the deportation of the popular 3.5 mm headphone jack. It also contained water hostility technology and boosted accomplishment with dual rear cameras on the 7 Plus. These two phones were discharged on September 16, 2016.
  • iPhone 8 and iPhone 8 Plus – The iPhone 8 comprised a glass back and the ability to accuse wirelessly. These interpretations were broadcasted on September 22, 2017.
  • iPhone X and iPhone XS (iPhone 10) – The iPhone X fetched a full OLED screen, ceiling face sensors for Face ID, and the reduction of the traditional home button. It was disclosed on November 3, 2017.
  • iPhone XR – An interpretation of the iPhone X submitted at a lower price point. The iPhone XR is made of plastic rather than glass and captions a lower resolution 720p network, and a single rear camera rather than a dual camera.
  • iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max – Released in September 2019, the iPhone 11 kept the exact degree design found on the X and XR. The iPhone 11 launches at a worse payment question than the flagship 11 Pro and Pro Max, the latter of which has three posterior cameras.

iPhone Features

  • Camera backing
  • iTunes assistance
  • Voice attendant Siri
  • Ram of 4GB and 6GB
  • 1.96 million apps in the Apple app stock
  • 4G and 5G aid
  • The new iPhone prototype supports an identical sim
  • The new iPhone criterion comes with a 12MP camera
  • The new iPhone reaches with a GPU of 4 core drawings
  • Complexion ID
  • Direction
  • Barometer
  • Wi-Fi
  • Bluetooth
  • GPS
  • NFC
  • USB consent
  • Up to 80 hours of symphony stage

Advantages of iPhone

There are various objectives of the iPhone-

  • Apple ecosystem: iPhone is a favorable phone if you have additional Apple appliances such as MacBooks, Apple Watch, or iPads. Pertaining one device with another is seamless and relatively effective. This is handy if you have to disseminate files or prints from your phone to your laptop or vice versa.
  • Secure and great App store: One of the purposes is that you will have a fabulous app store. This suggests that there is a lot to choose from. and you should be able to uncover something that caters to your necessities, preparing your ordeal as a tech-savvy individual all the more satisfying. In accumulation, all the iPhone apps available on Apple Store are assessed and secure for private and professional practice.
  • iCloud: iCloud is a cloud depository service from Apple. When swerved on, it can automatically conserve all your files and photos to the cloud as a bottleneck in case your appliance gets lost or embezzled. Also, you can enter it with your email anywhere with an internet ticket.
  • Faster processor: Let’s compare Samsung Galaxy S20 Ultra with iPhone X, the promising android phone vacant in the demand right presently, and almost a 3-year-old iPhone. The geek-bench achievement for a single core of this is identical to that of Samsung.
  • Fewer security breaches: While you have the sovereignty of customization on an Android, it might be valuable. Android phones are easy to visa and hackers can destroy your files or even embezzle your advice.

Disadvantages of iPhone

iPhone has distinct drawbacks also-

  • Apple Ecosystem: The Apple Ecosystem is both a blessing and a curse. Formerly you get in, it’s impossible to get out. The ecosystem is virtually there to make consumers obtain more Apple products. You’re liable to purchase a MacBook if you have an iPhone rather than a windows laptop. This way you won’t be competent to glimpse if other brands have better appliances and you’ll have to continue until Apple gives rise to one or updates the previous category.
  • Overpriced: While the commodities are very wonderful and glossy, prices for apple products are way too great. Brands like One Plus are pushing hard on making amazing cheap phones that you feel cheon toned for reimbursing an Apple bounty.
  • Less storage: iPhones do not succeed with SD card slots so the idea of upgrading your storage after purchasing your phone is not a possibility. So, you most likely have to buy an expensive bigger inward repository interpretation.
  • Battery life: The iPhone battery’s vitality is not that great when distinguished from other smartphones. While numerous people will be happy with the accomplishment of their batteries, extremely if it lasts all day long, some may find this a crisis for them.
  • Security issues: Security Issues on iOS devices like iPhones have recently served as a major problem due to recent news stories. Stoners must be aware of these security issues when wielding any device on the internet since pirates will find new ways every day to get into subjective information without getting arrested.
  • No security against loss or theft: iPhones come at such high rates that many people will contemplate swapping safety against casualty or theft as adequately as getting apps like Find My Phone.

iPhone Advantages And Disadvantages

Comparison Table for Advantages and Disadvantages of iPhone

AdvantagesDisadvantages
iPhone has a promising processor and GPU that depletes a low battery and bestows maximum outcome.There are limited free apps available on the Apple app store and head apps are expanded. So there are fewer opportunities to get a good app available.
Apple iPhone reaches with the reasonable audio disposition of the mic, speaker, and loudspeaker.iPhone parts cannot be restored if worsened. For example, you cannot restore the artillery in your iPhone.
All Apps in the Apple app store have to take off through a strict approval technique. Only apps with good accomplishment scores get authorized.If your iPhone subsidies from your hand or are stolen then you will relinquish a higher quantity of capital.
If you use Apple stocks then you understand no dilemma in using any new property of Apple.All the fractions of the iPhone are costly so the improvement tax of the iPhone is also important.
Apps in the Apple app store are less prone to germs.It is impossible to uncover Apple iPhone chargers.

FAQs on iPhone Advantages And Disadvantages

Question 1.
Why is it called an iPhone?

Answer:
According to Steve Jobs, the “i” word in “iMac” (and therefore “iPod”, “iPhone” and “iPad”) stands for internet, individual, instruct, inform, and inspire.

Question 2.
Why is the iPhone so expensive?

Answer:
The main reason for this is that Apple uses extremely high-quality materials to make their phones, which ensures a lifetime use capacity much longer than that of Android iPhones.

Question 3.
How long do iPhones last?

Answer:
Apple estimates an average lifespan of three years for their iPhones, but many people see a decline in performance around the two-year mark.

Advantages And Disadvantages Of E Business | What is E Business?, Benefits and Limitations of E Business

Advantages And Disadvantages Of E Business

Advantages And Disadvantages Of E Business: An e-business is a business that conducts its online transactions online, and is supported by technology. It can be anything from an internet retailer to a classified website. The advantages of e-business are that it has low overheads, it communicates with customers in real-time, and it has the potential to reach a large number of customers at once. This form of business is becoming more popular than ever, but there are still many factors that are relevant to its success and failure. One of the most important factors is the availability of e-payment options. It has been found that a majority of people who use online transactions prefer to pay via credit or debit card as opposed to cash.

Another factor is the internet’s ability to maintain large amounts of data at low cost, which allows for small and medium businesses to collect an array of information on their customers in order to provide them with better service. As the digital era has taken off, many businesses have begun to shift their focus towards creating an online presence. This has been made possible by technological advancements that make it easier for businesses to create, upload, and store digital content for exposure across the internet.

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Today, there are some key advantages that online business offers over stores, from easy sharing and access to a global audience. With so many advantages, it’s easy to understand why businesses are now investing in online marketing. However, creating an effective online presence is a challenge. There are many distinct elements that need to be taken care of carefully as they can define your company’s success on the internet. There are two primary ways that you can develop your online presence: online branding and online marketing. In order to create a strong web presence, you need to create a consistent brand image across all of your online marketing. Regardless, just like any other business, there are disadvantages as well as advantages. In this article, we shall explore the pros and cons of running an e-business

Advantages of e-Business

E-commerce has many advantages – the biggest advantage is that it allows for 24/7 accessibility to customers. There are also no restrictions on what can be sold or shipped because of the online marketplace. Another great benefit is that e-businesses have access to a large customer base at a low cost and with minimal effort. Other advantages of e-business are as follows:

  • Save more – e-Business is about doing things faster, cheaper, and more efficiently. It’s about doing more with less. This means that you’ll be able to save time, money, and effort. In addition, the benefits of e-business are that it saves paper on forms and makes the process simpler for the customer.
  • Instantaneous updates – Many people tend to feel that the only way to keep up with the increasingly fast-paced and complicated world of business is through communication. However, many people forget that one of the greatest advantages from electronic business is the actual speed at which information can be communicated. Today’s fast-paced society often requires quick decision-making in order to stay ahead of the competition. e-Business relies on electronic communication – which allows for timely decision-making and faster exchange of information than ever before.
  • Virtual office – The office is not just behind the desk anymore. Today, offices are located in other parts of the world and may even be virtual. This is a fast-paced world that requires fast-paced decisions to be made, which is where e-business comes in. It allows for companies to take advantage of technology such as email and the internet to communicate efficiently with one another, using the Cloud for storage.
  • Better marketing – As internet marketing becomes more and more prevalent, companies have been able to gain a lot of benefits. One of these benefits is the ability to get their marketing for cheaper. This allows for lower prices for consumers which in turn drives more sales. The other benefit that internet marketing has offered is more control over their brand. Companies are able to control how their company is portrayed on various websites through social media, which has led to an increase in positive consumer reviews and positive word-of-mouth advertising.
  • More ways to make money – e-Business has many different avenues for making money. There are a lot of people who have been able to make a living off of the Internet. In most cases, the easiest way to make money on the Internet is through affiliate marketing. You can get started by creating an account and promoting products that will help generate traffic to your website. When people start visiting your website and buying your product, you will earn a commission from the sale.
  • More accessible and more freedom – The freedom of e-business is that you can set up your own business from the convenience of your home and anytime from any location. All you have to do is purchase a domain, website hosting, and start uploading your own graphics. You can also utilise the e-commerce platform online. Moreover, e-Business is the new way of doing business. It has brought many changes, and it still has a lot to offer. Today, e-business is the fastest growing and cheapest form of enterprise. It has even been considered as an alternative to traditional advertising methods.
  • Further Reach than brick and mortar stores – e-Business takes on many different forms, including small and large businesses. The Internet offers a wide reach for big companies that have an online presence, which is why it is becoming more popular for businesses of all sizes. Consumers can find these businesses quickly online, and the Internet has allowed these companies to reach out to a wider customer base. Not only does e-business give companies with a website the same opportunity as brick and mortar stores in terms of reaching consumers, but it also allows them to have more control over their business.

Disadvantages of e-Business

Not all e-business websites, platforms, apps, and businesses start off with a positive reputation. One of the biggest complaints people have is that they feel less secure because they don’t know who is on the other side of their transaction. There are also many cyber security concerns which can result in hackers stealing sensitive information from individuals or companies. Other disadvantages of e-business are as follows:

  • No Personal Touch – The immediacy of online communication has a huge drawback for the small business owner. Customers can do their research in a matter of seconds, but face-to-face communication is very difficult to replicate online.  For example, there’s no one to help you when you are looking for the right product; it could be the size, colour, or even if there’s a specific type of product that you need. You also can’t see what people are saying about your product or hear their stories. If a shopper has an issue with their order, they might have to wait days for someone to respond instead of just taking it back to the store and talking with a manager.
  • Delivery or product/service is not fast – e-Businesses can be very passive, which means that customers who want to see a product or receive service are on hold for long periods of time. This is a big problem when it comes to making purchases. Customers may not want to wait around and get frustrated by the lack of action. Moreover, long delivery times for products are also a major turn off.
  • Security concerns and privacy violations – The biggest disadvantage of e-business is the security issues it creates. For example, cyber crime is a growing issue that businesses are more sensitive about every day. Cybercriminals use many tricks in order to lure unsuspecting victims. One of their strategies is to create a fake website that looks like the real deal. They will offer a free trial or some other kind of gimmick that tempts people into clicking on it, and then they take over your account or steal personal information.
  • Not accessible to all – There are many advantages to conducting your business this way, as there are very few barriers to entry. Moreover, we live in the Age of Information where we can access any information with just a few clicks or taps. However, e-businesses have the disadvantage of not being accessible by all people. Resources such as Internet access, computer hardware and software, broadband internet service providers, and even smartphones can be expensive for some people who might not be able to take advantage of the benefits that e-businesses offer.

Advantages And Disadvantages Of E Business 1

Comparison Table for Advantages and Disadvantages of e-Business

Following are the advantages and disadvantages of e-Business.

AdvantagesDisadvantages
Further Reach than brick and mortar storesNot accessible to everyone
More accessible to new entrepreneurs and low barriers to entrySecurity concerns and privacy violations
More ways to make moneyDelivery or product / service is not fast
Better marketingNo Personal Touch
Virtual / cloud office
Instantaneous update
Save more

Advantages And Disadvantages Of E Business 2

Conclusion on e-Business Advantages And Disadvantages

As the use of e-business grows in both business and personal settings, it can provide significant benefits to businesses that are able to make the best use of this technology. e-Business has been recently turning into the leading marketing strategy and has changed the way that companies reach out to customers. It also ensures more control over marketing. However, it can also be a detriment if not used effectively. The best thing to do is research the various benefits of Web technology and then make an informed decision based on your own needs.

FAQs on e-Business Advantages And Disadvantages

Question 1.
What is e-business?

Answer:
e-Business is a form of commerce that can be conducted on or through the Internet. It typically involves the use of electronic devices and technology, such as computers, smartphones, tablets etc. The Internet has changed business practices drastically and continues to do so. As businesses venture online, they are better able to conduct their business and perform more efficiently with fewer employees.

Question 2.
What are the advantages and disadvantages of e-business?

Answer:
Since the introduction of e-business, organisations have been able to conduct their business in a much simpler and more affordable manner. However, there are also many disadvantages associated with it such as cybercrime and accessibility issues.

Question 3.
What are the features of e-business?

Answer:
e-Business is a global phenomenon that is constantly changing. A business can use e-business to take advantage of the digital revolution and tap into customers with different needs and interests. There are several key features of e-business, including mobile commerce, inventory management, customer relationship management, and social media marketing. With e-business, businesses can reach more potential buyers with their product or service.

Question 4.
What is the importance of e-business?

Answer:
e-Business has a lot of advantages, but it does have its drawbacks too. One thing that you will notice about e-commerce is how much trust is involved in the process. Because sellers and buyers are constantly connected to each other through their devices, there needs to be some sort of accountability for what you’re selling and what you’re buying. This makes the process much more complicated than it was before, as there are so many rules and regulations that make up the guidelines for e-commerce.

Advantages And Disadvantages Of Marginal Cost | What is Marginal Costing?, Pros and Cons, Formula And Characteristics

Advantages And Disadvantages of Marginal Cost: Marginal cost refers to the change in the total cost due to the increase or decrease in the volume of output by one unit. Here a unit can be a single unit or a group of units or a process too. Marginal cost includes only variable cost because fixed cost remains same due to an increase or decrease in production. Only variable cost tends to change hence, the marginal cost is also called aggregate variable cost or prime cost plus variable overheads. Marginal cost refers to such a technique of cost accounting which explains about the changes in cost or profits due to changes in the volume of output. Under it only variable costs are treated as the cost of production. Since the indirect and fixed costs are not taken into consideration therefore the marginal cost is the technique of recording the variable cost due to the changes in production.

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What is a Marginal Cost? What are the Advantages and Disadvantages of Marginal Cost?

Marginal cost refers to the change in the total cost due to the increase or decrease in the volume of output by one unit. There are several characteristics of marginal cost-

  1. Techniques of cost analysis: marginal cost is not the traditional method of costing. Rather it is a technique that deals with the effect of change in cost, volume, price etc.
  2. Division of costs: all the elements of the cost production, which is production, selling, distribution, are divided into variable and fixed costs.
  3. Periodic cost and product cost: marginal cost clarifies the difference between periodic cost and product cost. Fixed cost is termed as period cost as it is related to a specific period of time. Variable cost or marginal cost is termed as the product cost.
  4. Calculations of profits: here, the profits can be determined in a proper manner. Under it, contribution is calculated by deducting the marginal cost from total sales and net profit is ascertained by deducting the fixed cost from the contribution.

Calculating Marginal Cost

Calculating marginal cost helps the business determine the point at which increasing the number of goods produced will increase average cost. Costs can add up if the company needs to add equipment, move to a larger facility, or struggle to find a supplier who provides enough materials. Formula to calculate the marginal cost follows as-

Marginal cost=(change in cost) /(change in quantity)  MC=ΔCΔQ

MC= Marginal Cost

{ΔC}=change in cost

{ΔQ}=change in quantity

When charted on a graph, marginal cost follows a U shape. Unless the fixed cost is covered, the cost starts getting higher. It stays at that low point for a period, and then begins to creep in as the increased production requires spending money for more employees, equipment, etc. Understanding the marginal cost of a product helps a company to assess its profitability and make informed decisions related to the product, including pricing.

Advantages and Disadvantages of Marginal Cost 1

Advantages of Marginal Cost

Fixed in nature: Variable cost fluctuates from time to time, but in the long run, marginal cost is constant. Marginal cost remains the same regardless of the volume of production.

Cost Control efficiency: It fractionates the cost into fixed and variable. Fixed costs are excluded from the product. As such, management controls marginal cost-effectively.

Simplification of Overheads: It reduces the degree of over- or under-recovery of overheads due to separation of fixed overheads from production cost.

Uniform and realistic appraisal: As fixed overhead costs are excluded from product costing, evaluation of work-in-progress and finished goods becomes more realistic.

Supportive to Management: It enables the management to start a new line of production which is profitable. This is helpful in determining which product is profitable to buy or manufacture. Management can take decisions regarding pricing and tendering.

Helps in Production Planning: It shows the amount of profit at every stage of production with the help of cost quantity profit relation. Here a break-even chart is used.

Better Results: If marginal cost is used with standard costing, it gives even better results.

Determination of Selling Price: The difference between fixed cost and variable cost is very helpful in determining the selling price of products or services. Sometimes, different prices are charged for the same commodity in different markets to meet different degrees of competition.

Helpful in Budgetary Control: Budgeting for different levels and categorization of expenses into flexible budgets is very helpful.

Preparation of Tenders: Many business enterprises have to compete in the market to quote the lowest price. The total variable cost, when calculated separately, becomes the ‘floor price’. Any price above this minimum price may be quoted to increase the total contribution.

“Make or Buy” Decision: Sometimes a decision has to be made whether to manufacture a component or product or buy it ready-made from the market.

Disadvantages of Marginal Cost

Difficulty in Analysing Overhead: Separating costs into fixed and variable is a difficult problem. In marginal cost, both fixed and variable cost are not considered.

Ignoring the Time Element: Fixed Cost and Variable Cost differ in the short run; But in the long run, all costs are variable. All costs change in the long run at different levels of operation. When new plant and equipment are introduced, fixed costs and variable costs will differ.

Unrealistic Assumption: The selling price assumption will remain the same at different levels of operation. In real life, they can change and give unrealistic results.

Difficulty in pricing: The selling price under marginal cost is determined on the basis of contribution. It is very difficult to fix the price in case of cost plus contract.

Incomplete information: It does not give a reason for increase in production or sales.

Loss of Importance: In capital-intensive industries, fixed costs occupy a major part of the total cost. But marginal cost only covers variable costs. As such, it loses its importance in capital industries.

Problem of Variable Overhead: Marginal Costing removes the problem of over and under absorption of fixed overheads. Yet there is a problem in terms of variable overheads.

Sales-Oriented: Successful business has to go in a balanced way with respect to selling production functions. But marginal costing is criticised for giving more importance to its selling function. Thus it is called sales-oriented. Less importance is given to the production function.

Unreliable Stock Valuation: Under marginal cost stock of work-in-progress and ready stock is valued at variable cost only. No part of the fixed cost is added to the value of the stock.

Claim for loss of stock: An insurance claim for loss or damage to the stock based on such valuation would be prejudicial to the business.

Automation: Nowadays increasing automation is leading to an increase in fixed costs. If such rising fixed costs are neglected, the cost-fixing system cannot be effective and reliable.

Comparison Table for Advantages and Disadvantages of Marginal Cost

Advantages of marginal costDisadvantages of marginal cost
Income statement is guaranteedNo importance to time factor
Ascertainment of real profitFails for a long term plan
Profit planningEmphasis more on selling
Cost control efficiencyStock under evaluation
Managerial thinking development

Advantages and Disadvantages of Marginal Cost 2

FAQ’s on Advantages And Disadvantages Of Marginal Costing

Question 1.
What is the marginal cost depended on?

Answer:
It depends on the total volume of the goods being produced.

Question 2.
How can marginal cost be increased?

Answer:
Marginal cost can be increased by adding more time value to it. Increasing the workforce and penetration in new market

Question 3.
What is the criterion for the increase of marginal cost?

Answer:
When charted on a graph, marginal cost follows a U shape, this means that the marginal cost of any company initially decreases but gradually increases with the time depending on how efficiently output is being produced.

Question 4.
Why does marginal cost cross at minimum?

Answer:
Marginal cost crosses at minimum when the extra unit of output is cheaper than the average cost.

Advantages And Disadvantages Of Indirect Tax | What is an Indirect Tax?  Types, Features, Pros and Cons

Advantages And Disadvantages Of Indirect Tax

Advantages And Disadvantages Of Indirect Tax: Indirect taxes are the ones that are imposed on goods and services. Indirect tax is applied to the manufacturers who sell the products to consumers. This type of tax has no relation to the income of the person. Rather, the customer has to pay the indirect tax associated with the goods sold by the seller. Therefore both, the people who pay tax to the government from their salary and the person who pays the taxes in the shops for products are two different people.

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What is an Indirect Tax? What are the advantages and disadvantages of Indirect Tax?

Indirect taxes are the taxes that are imposed on the modes of entertainment, goods, and services. They are an entirely different and separate type of tax from the direct tax that is imposed on the income of employees. The manufacturers and retailers are supposed to pay these taxes to the government. So they drift a part of it to the customers and consumers. Hence, when the customer buys a product, he pays tax to the shopkeeper and he further pays the tax to the government. Some examples of indirect taxes are Excise Duty, Customs Duty, VAT, and GST.

Types Of Indirect Taxes

As already discussed above indirect taxes are quite different from income taxes. They are imposed on materialistic goods. Following are a total of seven types of indirect taxes in India.

  • Service tax: Service taxes are applied to the services provided by the seller or the company and have to be paid by the recipients in return for using the services. Your restaurant bill could be the best example to have the service taxes.
  • VAT: VAT also known as Value Added Tax, is imposed on the goods that are to be transported or being directly sold to the consumers. The VAT may differ from state to state. Value-added taxes are levied on all the goods, starting from the raw material to the final distribution.
  • Excise Duty: The term Duty also means Tax. Excise duty is imposed on the goods that are manufactured within the boundaries of India. This tax is paid by the producers and these producers recover their paid taxes from their customers.
  • Custom Duty: Custom Duty is an import-export duty. It is levied on the products that are imported into India from foreign countries and also on the products and goods being exported from India.
  • Entertainment Tax: The name in itself is self-explanatory, the tax which is levied on all the sources of entertainment as per the directions of the state government. It could be a movie, any amusement park, or any sports activity.
  • Stamp Duty: Under section 3 Indian Stamp Act, 1899, the stamp duty is imposed on the legal documents of the sale of any property.
  • Securities Transaction Tax: This type of tax applies to the trading of securities on the stock exchange.

Features of Indirect Taxes

Indirect Taxes have some very common but important features as follows-

  • It is imposed on commodities: Indirect Taxes are always applied on materialistic things like goods and services provided to the customers. It has no link with the income of an individual.
  • Taxes are rolled over: The taxes which we pay are had to pay by the manufacturers and producers. However, they shift their burden to the customers and impose taxes on them.
  • Tax Exemption: Whenever any customer pays the price after using any service or buying a product, then the taxes are included in the total bill. Therefore the customer doesn’t have to pay any extra charges over it.
  • Revenue for government: indirect taxes cannot be escaped, and they have applied to almost all the types of commodities, hence it provides a greater margin to the government revenue.
  • Consumers are at no financial loss: Since the Indirect Taxes are not included with the income taxes, hence they are of no great loss to the customers.

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Advantages of Indirect Tax

  • Convenient to pay: Since the Indirect Taxes are not attached to the income of people, they are easy to pay, and no need to have any strict records as such. It is a simple concept, the more expensive product you buy, the higher tax you will pay.
  • Easy collection: Indirect taxes are easier to collect and pay. There is no definite tax amount for every commodity, so you need not file any tax return statement, unlike the income tax.
  • Expedient: Indirect taxes are imposed directly on sale and purchase commodities, unlike income tax, which is levied on all the types of earnings, it is convenient to pay.
  • Good for health: Yes, you read that right. Indirect taxes are relatively higher on harmful products like tobacco. For example, cigarettes are taxed at 38% of the retail price. If a person is actually health conscious, then this idea will save them.
  • Wider context of Tax: When you pay the direct taxes, they are relatively higher. On the contrary, indirect taxes are imposed on the goods, so you don’t have to pay bigger amounts.
  • Contribution from every section: It is important to note that still there are many sections in the society that fall in the category who don’t earn more than 2.5lakh p.a. . Hence, they are exempted from the direct taxes. However, buying any product and paying indirect taxes is a contribution from their side to the nation.

Disadvantages of Indirect Taxes

  • Regression oriented: Since the tax remains the same on all the commodities and unlike income tax, it has no mercy on the poor, this return in continuous taxes implementation on them and results in regression.
  • Can lead to inflation: When the government increases the tax slab, the manufacturers and producers increase the tax on the products, which automatically becomes high. Such condition results in inflation.
  • Tax on raw materials: Indirect Taxes are also imposed on the raw material, which becomes costlier for the producers to buy and discourages them to proceed further with processing the raw material.
  • Uncertain revenue collection: Since the indirect taxes are imposed on the goods and commodities, so they vary in terms of the amount of taxes applied on the product. Hence, there is no certain definite amount fixed to be paid to the government.

Comparison Table for Advantages and Disadvantages of Indirect Tax

Advantages Disadvantages 
Convenient to payRegression oriented
Easy collectionCan lead to inflation
ExpeditedTax on raw materials
Good for healthUncertain revenue collection
Wider context
Contribution from every section

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FAQ’s on Advantages And Disadvantages Of Indirect Tax

Question 1.
Are Goods and Services Taxes included in Indirect taxes?

Answer:
Yes, Goods and Services Taxes, aka GST are a part of Indirect Taxes. It was brought to the public by GOI in 2017, where it covers all the important indirect taxes in one regime.

Question 2.
Who imposes and collects the Indirect taxes?

Answer:
Indirect Taxes are actually imposed on the manufacturers and suppliers. They further delegate this tax to the people and recover their tex reduced amounts from the customers.

Question 3.
Are Indirect Taxes tentative in nature?

Answer:
Yes, indirect taxes are quite uncertain and not fixed. So it can vary accordingly in terms of political, and economical changes.

Question 4.
Do the manufacturers need to get a license to pay the excise duty?

Answer:
No, the manufacturers are not required to get any license to pay excise duty. Just a simple registration will be enough.