Cost of production
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The document discusses the key inputs and factors of production: labor, capital, land, and enterprise. It explains the technical relationship between inputs and outputs, and how the law of diminishing marginal productivity states that increases in a variable input like labor will lead to decreasing returns. There are two categories of inputs - intermediate inputs that are transformed into products, and factor inputs like labor that facilitate this transformation. The document also defines different types of capital, rent, and the role of entrepreneurs in coordinating production.
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The main body of the document is dedicated to explaining the four factors of production: land, labor, capital, and entrepreneurship. It provides examples and definitions for each factor.
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This document discusses different costing methods used in management accounting including job costing, process costing, batch costing, contract costing, and service costing. It provides examples and explanations of key concepts in job costing like job cost sheets, predetermined overhead rates, and manufacturing overhead. Process costing is explained as a method used for mass production of nearly identical units where costs are accumulated and assigned to units produced. Batch costing is defined as identifying and assigning costs to a set amount of similar goods produced in a batch. Contract costing applies especially to long-term construction projects performed over multiple periods. Finally, service costing calculates the full costs of services an entity provides using direct and indirect costs.
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FIRMS AND PRODUCTION economics igcse.pptx
The document discusses factors of production and the demand for factors of production. It describes labor-intensive and capital-intensive production. Labor-intensive production employs more laborers than other factors like capital and depends mainly on labor. Capital-intensive production employs more capital than other factors and requires a high level of capital investment relative to labor costs. Production transforms inputs like raw materials into outputs like goods and services. Productivity measures output per input and increases when more output is produced from the same inputs or the same output is produced using fewer inputs. Factors that influence productivity include division of labor, worker skills, motivation, technology, and investment.
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