Use the Idea of the Circular Flow Diagram to Explain

question 88

Essay

Use the idea of the circular flow diagram to explain why the value of production equals total income equals total expenditure.

Evaluate special orders and special projects considering capacity and the incremental costs and benefits.

Understand the characteristics of effective job advertisements and the role of advertising in recruitment.

Recognize various recruitment sources, including local labor organizations, abroad recruitment, and digital platforms like LinkedIn.

Comprehend the legal and regulatory environment affecting recruitment practices, such as fees charged by private employment agencies.

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Definitions:

Factory Overhead Applied

The allocation of overhead costs, such as utility and maintenance expenses, to the production process or products based on predetermined rates.

Actual Costs

Actual costs are the actual expenses incurred in the production or acquisition of goods and services, as opposed to estimated or budgeted costs.

Credit Balance

A balance that appears on the right side of an account, indicating that a company owes money or has a liability.

Process Cost Accounting System

An accounting system used to track and allocate costs of production by process or department, commonly employed in manufacturing environments with continuous, homogeneous outputs.