Economic Cost Differs from Accounting Cost Because Accountants Do Not

question 112

True/False

Economic cost differs from accounting cost because accountants do not consider implicit costs.

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Definitions:

Scientific Management

Developed in the 1910s by Frederick W. Taylor, is a system for improving productivity. After analyzing the movements of workers as they did their jobs, Taylor trained them to eliminate unnecessary actions. This technique is also known as Taylorism.

Productivity

A measure of the efficiency of production, often quantified as the ratio of inputs to outputs in economic terms.

Taylorism

A theory of management that analyzes and synthesizes workflows, with the primary objective of improving economic efficiency, especially labor productivity.

Fordism

Is a method of industrial management based on assembly-line methods of producing inexpensive, uniform commodities in high volume.