CBSE Class 12-commerce Answered
What are the two components of investment and give its
meaning?
Asked by Topperlearning User | 15 Apr, 2016, 10:26: AM
Expert Answer
The two components of investment are fixed investment and inventory investment.
i. Fixed investment means an increase or addition in the stock of fixed assets of the producers during an accounting year.
ii. Inventory investment means the stock of finished goods, semi-finished goods and the raw material. It keeps varying over the period.
Answered by | 15 Apr, 2016, 12:26: PM
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