Operations – actions and decisions made by participants that affect the production, distribution, service

and management.

Service – a transaction in which no physical goods are transferred from the seller to the buyer.

Marketing – responsible for promoting and selling products or services including market research and
advertising.

Finance vs accounting

Finance focuses more on budgeting and directing financial transactions for a business

Accounting – to account for/ record and report on financial transactions.

The life blood of the economy is money

Finance

Marketing

Operations

Their main purpose is to gain sales in order to gain revenues

Finance > marketing > operations

Operations – input and output

Supply chain – the process from suppliers to the customers.

- It is sequential in nature and interconnected

Value added –

Antitrust policy – breaks monopolies for the sake of the consumers

- It limits the power of monopolies

Managerial economics helps the managers in decision making and acts as a link between practice and
theory.

Economic theory – 25

A particular idea/principle that aims to describe how an economic work.

Supply and demand, classical economics, neoclassical economics. Market socialism. BREAKEVEN

Demand + supply – price +

Economic theory – approach how you deal with the problem, and why it came to be, how you address it.

- Helps apply, give assurance for a good decision from one point to another

- Assume profit maximization

- Stakeholders and social concerns

- Environmental concerns – GSR social responsibility.

COST ACCOUNTING

1. Management – can be internal or external

2. Char. Management Advisory Service – always relates to the future. Involves managerial courses
as well like human resources and op management.

3rd slide

Price- seller cost – buyer

Selling cost – equipment wrappers, bags

Inventory – raw materials, work in process, finished goods.

4th slide
Cost drivers – direct cost and effect.