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Business Economics - Meaning
"Economics in corporate environment" refers to Business Economics. This type of economics puts and uses microeconomics analysis for making specific business decisions. Elements of economics and economic theory become the subject of business economics. It uses techniques of mathematics such as correlation and regression analysis to derive best and reunite decisions which are undertaken in business situations as a result of scarceness. Scope of business economics includes problems and difficulties related to business organization, management, and strategy.
With the use of economic theory and quantitative methods, Business Economics ensures the following in the business:
Issues and difficulties with which Business Economics is concerned -
Terms related with Business Economics are:
Definition of business economics by various universities -
University of East London - "Business Economics deals with issues like the ways markets work; what firms do what their motives are, how they perform; and the role of government in regulating business activity".
According to Harvard University - "Business Economics uses economic methods to examine practical aspects of business, including management, business administration, and related fields of business economics."
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Objectives of Cost Accounting - To determine the cost of production on per unit basis, for instance cost per liter, cost per kg, cost per meter, cost per ton etc.
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If the business giving the goods or service were to wait until the contract is totally fulfilled before recognising revenue, the income statement could provide a misleading notion of the wealth produced in the several accounting periods covered through the contract.
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