Business Structures, Assets, and Accounting Essentials
Organizations
There are all kinds of organizations. Organizations administer plans and require organization, coordination, and control. Organizations, when well-managed, are effective, doing the right things correctly.
Production Factors
Production factors are the elements of wealth used in the production of goods and services:
- Nature: Natural resources
- Goods and Services (BYS): Products and services offered
- Labor: Human effort
- Capital: Money to set up operations and purchase technology
- Time: A critical
Business Organization and Management Process
Organizational Models
Companies can adopt various organizational structures, each with its advantages and disadvantages:
- Linear or Hierarchical: Based on the direct authority of the head over their subordinates.
- Advantages: Clarity, simplicity, and well-defined responsibilities.
- Disadvantages: Undemocratic, little relationship between departments, and unspecialized management.
- Functional: Lower levels are connected to different specialists, each an expert in their function.
- Advantages: Expertise develops,
Understanding Employee Compensation and Payroll Concepts
Understanding Employee Compensation
Contributions are considered accruals, which are amounts received by the worker for various reasons, independent of salary and not listed under social security.
Pay and Base Salary
Pay encompasses all the worker’s economic earnings in cash or in kind.
The base salary of the worker is fixed by a unit of time or work.
Pay Supplements
Pay supplements are added to the basic wage and are set according to various circumstances.
- Personal Accessories: These are based on personal
Six Sigma, Work Instructions, and Quality Management
Six Sigma Phases
Define specific goals to achieve outcomes, consistent with customers. Measure reductions of defects. Analyze problems; cause and effects must be considered. Improve process based on measurements and analysis. Control process to minimize defects.
Work Instruction Elements
Purpose of the instruction, scope of instruction, definitions, responsibility, procedure, related documents, attachments.
Procedures vs. Work Instructions vs. Records
A procedure describes how a process is performed,
Read MoreSystem Administrator’s Knowledge: Data Processing & MIS
The Knowledge Required by System Administrators
System administrators require knowledge of various facts, broadly categorized as follows:
1. Data Processing
Almost all organizations perform a large number of groupings and a variety of transactions. Writing with precision and processing these transactions is known as Business Data Processing.
2. Management Information Systems (MIS)
Managers at all levels should receive summarized volumes of organizational transactions, as well as extensive information
Read MoreUnderstanding Accounting: Concepts and Applications
Accounting Concepts
Accounting involves techniques used to produce structurally systematic and quantitative information, expressed in monetary terms, about transactions carried out by an economic entity. It also includes certain identifiable and measurable economic events that affect it. The objective is to provide stakeholders with information for decision-making regarding the economic entity.
Cost Accounting
Cost accounting is a classified information system that collects, controls, and allocates
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