Samuelson’s Definition (Modern Definition of Economics):Samuelson’s definition is termed as a modern statement of economics.According to Samuelson, “Economics is a social science concerned mostly with the manner society selects to employ its resources that have alternative utilizations, to produce goods and services for current and future consumption”.The above statement is general in nature. There are many general points in the definitions of Samuelson and Robbins.Samuelson’s definition states us that economics is a social science and it is mostly concerned with the manner how society uses its limited resources for alternative utilizations. All this we find in the statement of Robbins. However Samuelson goes a step further and discusses how a society employs limited resources for generating goods and services for current and future consumption of different people or groups.An interesting point that Samuelson state is that the society might or might not make utilization of money.
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Classification of costs for Management decision making - Marginal Cost, Differential Costs, Opportunity Costs, Relevant Cost, Replacement Cost, Abnormal Costs, Controllable Costs, Shutdown Cost, Capacity Cost, Urgent Costs.
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Efforts should be ready to avoid duplication of work. Journals, ledgers etc. should be planned in a way which control data is available with no extra analysis.
Accounting for by-products - By-products are together generated products of minor significance and do not contain separate costs until the split off point.
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Controlling the costs, already pre-determined on the basis of assumption of reasonable level of efficiency taking the past, present and future into account is the main focus of cost control.
the claims are generally categorized into - equity (owner’s claim) and liabilities (claims of outsiders). further the liabilities are classified as either current or non-current.
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