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Q. Classification of Working Capital?
Classification of Working Capital: - Working Capital is able to be classified in two ways firstly on the basis of concept and secondly on the basis of its need.
(1) On the Basis of Concept: - Based on this working capital may be of two types:
(i) Gross Working Capital
(ii) Net Working Capital
(2) On the Basis of Need: - On this basis as well working capital may be of two types:
(i) Permanent Working Capital
(ii) Temporary Working Capital.
Laspeyres Method Laspeyres method uses the quantities consumed during the base period in computing the index number. This method is also the most commonly used method which inc
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