Accounting: Driving purpose of feudalism and capitalism Custom Essay

Driving purpose of feudalism and capitalism, circuit of capital formulas for feudalism and capitalist manufacturing, write and explain? The driving purpose of feudalism was the exchange of goods between towns and countries. This was should not be confused for capitalism despite there being a concept of profiteering in this. The goal of production under feudalism was to use values. As such the circuit of industrial capital was C-M-C (commodity becomes money which becomes more commodities if one traded well). As such the main driving factor was not to profit from trade but to achieve survival to all the players. However under capitalism the goal of production is to maximize exchange – values or Return on Capital Employed (ROCE). The goal of capitalist production is thus not the use-values but rather maximizing for each of dollar of capital. Instead of having C-M-C, capitalist have M-C-L & mp…p…c1 (C-c) – M1 (M-m): In which case c and m are surplus-value or s, M=money, C=Capital, L-Labor power, P=Production process mp= means of production or constant capital. Lecture2Question is *Bond Corporation Holdings case – explain creative accounting policies used and connect to Positive Accounting Theory.

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