Budgetary Control and Cost Accounting in Organizations
Limitations of Budgetary Control
Budgetary control starts with the formulation of budgets, which are mere estimates. Therefore, the adequacy or otherwise of a budgetary control system, to a very large extent, depends upon the adequacy or accuracy with which estimates are made.
Budgets are meant to deal with business conditions which are constantly changing. Therefore, budget estimates lose much of their usefulness under changing conditions because of their rigidity. It is necessary that the budgetary
Read MoreStrategic Management: Competitive Advantage and Industry Analysis
Competitive Advantage
Competitive Advantage: Superior performance* relative to other competitors in the same industry or the industry average.
Sustainable Competitive Advantage: Outperforming* competitors or the industry average over a prolonged period.
Competitive Disadvantage: Underperformance* relative to other competitors in the same industry or the industry average.
Competitive Parity: Performance* of two or more firms at the same level.
Competitive advantage is always relative, not absolute.
To
Demand Elasticity and Law of Demand in Microeconomics
Elasticity of Demand and the Law of Demand
Elasticity of demand is a measure of how responsive the quantity demanded of a good or service is to changes in its price or other influential factors. It’s a fundamental concept in microeconomics that helps businesses, policymakers, and economists understand consumer behavior and make informed decisions.
Types of Elasticity of Demand
- Price Elasticity of Demand: Measures how responsive the quantity demanded is to changes in the price of the good or service.
Oil Price Impact on Inflation and Global Finance Since 1973
The Rise in Oil Prices and Inflation Trends
The new monetary system is characterized by high volatility but also by great flexibility in the two main adjustment mechanisms: the exchange rates of major Western currencies and movements in the balance of payments. This feature facilitated the absorption of the imbalance that occurred in international payments after the first oil shock of 1973. The rising oil prices resulted in a decrease for Western economies of some 150 billion dollars between 1973
Read MoreMarketing Mix: Product, Price, Distribution, Promotion
What is the Marketing Mix?
The marketing mix is the most appropriate combination of four marketing tools controllable by the company and known as the 4Ps in English:
- Product (attributes, positioning, brand, and packaging)
- Price (price list, pricing strategies)
- Distribution (intermediaries, distribution channels, logistics)
- Promotion (advertising, sales promotions, public relations, direct marketing)
The Product
The product is divided into two categories:
- General products: The consumer (end to his own use)
Key Business Functions: Marketing, Finance, and Operations
Functional Areas in a Company
Marketing
Finance
Production or Operations
Human Resources
Marketing
Stages of Product Development
- Product or service essential for the benefit of the product itself, to solve problems that consumers buy in fact to purchase, such as shelter.
- The real product is formed by all parts of the product, such as style, quality, packaging,