Depreciation is the gradual reduction in the value of an asset over time because of wear and tear, obsolescence, or other factors. It’s a financial accounting concept that reflects the economic reality that assets ultimately lose their usefulness or become less valuable.
Departmentation is the process of breaking down an enterprise into various departments.
Input-Output Analysis (IOA) is a powerful economic tool that facilitates a comprehensive understanding of the complex interdependencies within an economy.
Leverage is a financial concept that refers to the ability to magnify the impact of an investment or a business decision through the use of borrowed capital. It involves using various financial instruments or borrowed funds to increase the potential return on an investment.
Capital budgeting helps companies decide where to allocate their funds for projects that will benefit them in the long run.
Marginal Revenue (MR) is the additional revenue generated by producing and selling one more unit of a good or service. In other words, it represents the change in total revenue that occurs as a result of selling an additional unit of a product.
Marginal cost is the additional cost a business incurs when it produces one more unit of a good or service. In simpler terms, it represents the cost of making an extra item.
Game theory’s ability to model and analyze strategic interactions has proven invaluable in addressing complex problems involving conflict, cooperation, and competition.
Value analysis, also known as Value Engineering, is a systematic and structured approach that organizations use to improve the value of their products, services, or processes. This powerful tool enables businesses to identify and eliminate inefficiencies, reduce costs, enhance quality, and drive innovation.
At its core, system analysis is like dissecting a puzzle to understand how each piece fits together. It’s the systematic process of examining a system, be it a computer program, a manufacturing process, or even a traffic management system, to comprehend its inner workings and identify areas where improvements can be made.
