Notes, abstracts, papers, exams and problems of Economy

Production: Definition and Objectives

Production is the process by which certain significant items, work, machines, working people, or knowledge are transformed into consumer products, goods, or services.

Production Goals

• Ensure that delivered products or provided services are requested, both in the amounts and on the dates agreed upon with the customer.
• Ensure that these products or services are manufactured or provided within the expected costs, and that these costs are minimal, for greater profit.

Description of Output

This is to determine in detail the procedure to be followed and the means employed to produce the products or services.

Stages of the description of the production:

• Define the parameters of the production process
• Determine the necessary

Recording and Accounting for Stock of Transactions of Goods

Accounting for Stock in the PGC

The System of Accounting Records and Accounts of the PGC Identification

300 -> Goes Active

600 -> Shopping

700 -> Sales

There are 2 sets of recording the goods:

1. Administrative Procedure: Only the account becomes 300.

(300) to (400) BUY

(430) to (300)

(700) SALES

2. Procedure Speculative:

(600) to (400) BUY

(430) to (700) SALES

You can do both methods but speculative is recommended. We distinguish two phases:

• During the year: The balance of the 300 reflects the opening balance.
• End of the year: An adjustment is made. There are 2 ways:
  • Balance goes to 600/700 129.
  • Inventory mirror 300. This is carried through the book store.

Create Accounts and Sub-Stock

The General... Continue reading "Recording & Accounting for Stock Transactions of Goods" »

Countercyclical Policy

Fiscal or monetary policy designed to mitigate the intensity of the economic cycle, contributing to the stability of output and employment.

Absolute Price

The price of a good, service, activity, or service factor in terms of monetary units.

Real Price

The price of goods, services, activities, or services in relation to a factor, an index that has a basket of goods and services, such as the CPI.

On Price

Price expressing the ratio of exchange of goods, a service, or an asset factor in terms of another good.

Projection

Estimating the value a variable will have in the future, based on informal procedures or formal models, conditional on available information.

Basis Points (bp)

A hundredth of a percentage point. Example: an increase... Continue reading "Understanding Key Economic and Financial Terms" »

Definitions:

• Transport: The transfer of people and goods from one place to another.
• Shopping Center: This is a large complex which includes small specialty shops.
• Import: Purchase of goods and services that a country performs abroad.
• Ecotourism: Focuses on the knowledge of nature and the ecological value of protected areas.
• Balance of Payments: Reflects all economic transactions by a country with the rest of the world during a period of time.
• Charter Flight: A flight booked by a tour operator to transport passengers to a holiday destination, when passenger demand requires it.

Two Types of Internal Trade:

• Wholesale: The company conducts a business that purchases goods in bulk directly from producers for resale to retailers.
• Retail: The retail business

Current Account Card (Vendor)

This tab tracks credit purchases, increasing vendor debt, and payments, decreasing it. It shows the outstanding balance. All vendor accounts are compiled in a set of cards.

Basic Sales Operations

These operations aim to place products on the market, including:

• Determine Selling Price

• Find Buyers

• Establish Credit Lines

• Execute Transactions

• Deliver Goods

Identifying Potential Buyers

Searching for Information

Organize a list of purchase orders and property requests from potential customers.

Result

Knowledge of potential buyers.

Verifying Goods Availability

Searching for Information

Check stock records. If stock is insufficient, request the purchase of missing property.

Result

Confirmation of stock for prospective buyers.

Managing Credit

Searching

317 A slide along the same curve occurs when the quantity demanded changes as a result of a change in the price of that commodity. The shift occurs because any other factor varies.

318 Increase in the price of a good substitute; declining price of complementary goods, income growth (if it is a normal good), low income (if it is an inferior good), increased the public's preferences for that good.

319 Lowering the price of a good replacement, increased the price of complementary goods, income growth (if it is an inferior good), low income (if it is a normal good), drop in public preferences for that good.

361 A surplus is one in which, for a given price, the quantity supplied exceeds the quantity demanded. It is corrected when the producers, unable... Continue reading "Market Dynamics: Supply, Demand, and Equilibrium" »

The Incomplete Gold Standard and the Start of War

The onset of war necessitated increased state spending, leading to budget deficits. Governments faced the challenge of covering borrowing through higher taxes or printing money. To prevent excessive gold leakage, governments implemented two measures:

• Prohibition of gold exports without authorization.
• Suspension of convertibility, effectively collapsing the gold standard.

The Fin de Siècle Crisis (Late 19th Century)

The period around 1870 witnessed a shift known as the fin de siècle crisis. Production increased, and land values, rents, and wages rose. However, as Europe imported increasing amounts of agricultural products and materials from overseas countries at competitive prices, agriculture faced... Continue reading "Economic Impact of War and Financial Crises: A Historical Analysis" »

Accounting Fundamentals

Businesses rely on accounting information for decision-making. Accounting is an economic science that studies business assets, applying standards and scientific principles to record financial information. This involves statically observing a company's financial status and assets at a given time.

Accounting provides crucial information for informed decision-making. Its importance lies in generating and delivering quality data that accurately reflects the company's financial situation. The primary purposes of accounting are:

• To provide managers with information for decision-making and future planning.
• To enable owners to verify the protection of their interests.
• To inform employees about the company's performance, which affects

Recruitment of Human Resources

6.1 Introduction to Recruitment

Enterprises can explore both the external and internal markets to acquire human resources.

In today's dynamic environment, recruitment is a proactive process where companies take the initiative in pursuing human resources. Its importance cannot be overstated, as it significantly determines the success of the entire recruitment process.

Recruitment Definition: A set of activities and processes undertaken to attract a sufficient pool of qualified candidates, enabling the organization to select the most suitable individuals to meet its workforce needs.

Adherence to relevant regulations governing recruitment is crucial.

Purpose and Importance of Recruitment

• Determine current and future recruitment

Accounting Standards

One of the objectives of Financial Accounting is to prepare financial statements for external users. Since this information, prepared by companies, significantly influences the decisions of users, it has been considered necessary to normalize the principles and rules used in its preparation. Accounting standards ensure that the accounting information disclosed complies with minimum standards of quantity and quality, setting quality requirements, the format to be disseminated, and the principles and rules of valuation to be used.

Spanish accounting standards are primarily contained in business law (Commercial Code, Corporations Law, etc.). The General Accounting Plan 2007 and the General Plan Small Business Accounting 2007... Continue reading "Understanding Accounting Standards and Financial Concepts" »