Definition: A budget is an estimated amount for expense and revenue during a specified tenure. Government, businesses, or individuals use budgets to maintain their financial position. Once the budget is estimated, it is evaluated and re-estimated regularly. One way to think of a budget is an organization’s financial strategy for continuing to function, maintaining operations, …
Neoclassical economy says that the scarcity of resources or uneven resource distribution causes conflicts. Participants in the economy compete for a finite supply of resources. Contracts are used to address conflicts of interest, and they require both parties to state their expectations and promises clearly. Contracts protect the interests of all parties concerned and result …
There are both fixed and variable expenses associated with a production process. The fixed cost is comparable to a one-time payment, but the variable cost refers to ongoing overhead expenses. Every company’s top priority should be to locate cost-cutting opportunities so they may increase their profits and gain a competitive advantage in their industry. The …
Toyota Motor Corporation first launched the 5S Methodology in Japan in the 1970s. To streamline the Just-In-Time production process, they adopted this methodology. The Just-In-Time approach to inventory management ensures that necessary commodities arrive just in time. This lowers the cost of carrying inventories. The 5S Methodology is currently employed on a global scale. This …