Economicsis referred to as a general study of choices that are made byindividuals who are habitually faced with the issue of scarcity.Scarcity aspect is a circumstance in which resources are thought tobe limited and can be used in various ways, but one must sacrificeone resource for another resource (Biondi, &amp Zambon, 2013).

Conceptsof Cost

Differencebetween economic and accounting concepts of cost

Economiccost is a further inclusive idea of the accounting costs. Accountingcosts solitary contain what some economists conceive to be the&quotexplicit costs.&quot They are the aggregates that a businessessentially wages out to additional persons in the course ofgenerating their produce. If one operates a business vendingcosmetics from home, the accounting charges will comprise aspectssuch as the value of the cosmetics the cash one spends on marketingand publicity (Manger, 2014). The cost standard entails thatproperties should be verified at the currency quantity at the periodthat a benefit is attained.

Inthe management of the costs associated with a value-creationactivity, I will ensure that enough funds are allocated to theactivity in order to promote its growth. However, I would invest morein the activity to ensure that maximum utility of the opportunity isalso realized. I will have to perform some consultations concerningthe management of the project in which I would request my colleaguesto share with me the ways on how to manage the activity effectively(Hill, Cronk, &amp Wickramasekera, 2014). I will involve somemotivation to the employees to ensure that there is high competitionin the performance hence resulting in the generally betterperformance of the activity. I will encourage accountability andtransparency in the performance among the employees through promotingopenness and trust in the bid to promote customer satisfaction(Menger, 2014). I would also employ some new production systems topromote diversity and be keen on the market trends to ensure I offerquality services and goods to the consumers. I will have to embracecreativity and work efficiently in the competition. I will have toconsider the current and the future market speculations to ensure Iprovide the services and the goods according to the market trends.

Thecost of operations determines the level of the operation of thecompany especially concerning the costs of the operations in theproduction process. The development strategies of the company,therefore, are highly dependent on the available resources of thecompany hence determine the cost of the future strategies of thecompany. The plans have to lie within the economic stability of thecompany, therefore the cost of the strategized projects has to bewith the economic ability which is the operational costs.

Theconnection between the cost of operations and some other businessfunctions is equally significant. The goal of the cost of operationpurpose is to produce some goods and the services prerequisite byconsumers at the same time as handling assets as professionally aspossible. The practice helps to omit the challenges at theorganization through the equitable utilization of the resources(Byrne&amp Willis, 2014). Clashes between operations and selling occupations are expected tobe the hub on the need to market to guarantee actions to concentrateon the satisfaction of the customers. The operation costs, therefore,function to ensure that the organization produces the goods and theservice in line with the available resource while also ensuring thatthe resources are well utilized. This practice, however, is possibleto result in the demands to create superior capacities, morediversity, higher eminence and a quicker reaction, which are expectedresult into less competent operations. Struggles in the setups andaccounting and the finance functions, instead, are probably to becentered on the need for the accounting and the finance to requirethe operations to manage the resources efficiently effectively. Thepractice is predicted to jerk the operation (Biondi, &amp Zambon,2013). The operation costs lie at the core of every institute andrelate with entirely the other commitments of the group. The practicehelps in achieving contract on what choice parts lies in theresponsibility of actions, and what must be the foundation ofadministrative within the operations that is a vital part ofsafeguarding the constancy of achievement over a period needed for apositive administrative strategy.

Pricesunder different market structures

Inperfect competition, the prices of the goods are determined by thedemands and the supply of the commodity and more specifically on thequality of the goods. In a perfect competition among the buyers andthe sellers, asymmetry value would be determined at the point wherethe amount required is equivalent to the obtainable supply. That is,the equilibrium charge will be recognized at the level where thedescending sloping demand curve meets the perpendicular the supplycurve (Hill et al. 2013). Therefore, the operations of theorganizations are still constant due to the independence of themarket factors. The supply and the demands of the goods are notaffected due to the presence of many producers and the suppliers onthe market.

ToyotaCompany is a manufacturing company that deals in the motor vehicleand spares products. It is an international company that has itsheadquarters in Japan. The company is known for its high qualitymotor vehicles globally. Some other firms in the same industryinclude Volkswagen, Roll and Royce, Ford and Aston Martin. Thecompany falls under a perfect market in which it has many othercompetitive companies operating in the same location with the samecapacity. The company is not, therefore, a monopoly but operatesunder the perfect competition.

Thedemand and the supply curve of the market determine the prices of thecompany’s produce. The company’s prices range with the set marketprices determined by the demand and the supply of the other firms(Menger, 2014). Therefore the company has no control over the pricesof the goods but works with the speculations of the market trends toeffectively produce within the market speculations.


Biondi,Y., &amp Zambon, S. (Eds.). (2013). Accountingand business economics: Insights from


Byrne,M., &amp Willis, P. (2014). The role of prior accounting educationand work experience

RoutledgeCompanion to Accounting Education(pp. 145-162). New York.

Hill,C. W., Cronk, T., &amp Wickramasekera, R. (2013). Globalbusiness today.McGraw-Hill


Menger,P.-M. (2014). Theeconomics of creativity: Art and achievement under uncertainty.


Despitethe fact that a majority of American mothers work at least on a parttime basis, 60 percent of American citizens believe that children arein better placed when one of the parents stays home to wholly focuson the family. On the other hand, 35 percent believe that it does notmake any difference for the children, whether both parents go towork, or one chooses to stay home.

Thefirst scenario describes the traditional American family type wherebyone of the parents, particularly the mother, stays home to raise thefamily while the father goes out to work in the corporate world orprivate business. The 21stcentury has seen massive changes in the traditional family setting asmore women follow their men to work today. Currently, womenconstitute nearly 50 percent of the workforce, swiftly eliminatingthe male-female earnings gap that previously existed. According tothe United States Bureau of Labor Statistics, women now make up amajority of the college graduates in the country. In addition tothis, they have not been as affected by the recent layoffs as theirmale counterparts. This means that the modern woman, wife, and motheris determined to work in the corporate world, make money, developtheir career and at the same time raise a family. However, thiswholly depends on the economic position of specific families and thevalues that they believe in. A financially stable family mayautomatically have the wife stay at home, while a financiallystraining one may have the wife automatically begin working despitehaving a young family because they need the money. Despite this, thesituation needs to be agreed upon between the two parties, though inreality, having both spouses going out to earn an income is moreeconomically viable as opposed to having one of them staying home tobring up the family (

Coincidentally,active child bearing years and career development years come at thesame in the life of a woman. This may sometimes present a dilemma tothe family who may be torn between having one spouse look after thechildren, or going out to work. Electing to stay home taking care ofthe household would rob the individual of the opportunity to earn anincome. This is simply because that she does not make any money whilein the house. Staying away from the labor market also deprives thelabor market of earnings from the individual, which tend to increasewith increased work experience. As argued by many, the cost of beingabsent from work is more expensive in comparison to its financialaspect, though this is yet to be proven as the true position.

Accordingto the United Nations Women organization, economies grow when morewomen work. The big challenge of delivering strong and sustainablelong-term growth in the economy would only be met when all availableresources are taken full advantage of. Eliminating women from theworkforce would only contribute in forsaking the crucialcontributions they bring to the economy. It would also mean that theyears spent in investing education for the girls and women is wasted.Exploiting the talent pool ensures that all works, male and female,get an equal chance to make contributions at home and in theworkplace, a factor that enhances the welfare of individuals as wellas the society (

Basedon a number of surveys from different countries, increased householdincome especially if earned and controlled by a woman greatly affectsspending habits. The income may be sourced from own income earned orcash transfers, with preference on personal earnings as it createssome degree of confidence and care. When a woman makes money, herdisposable income is increased, and she is more likely to spend it onher children, her needs and those of her household. This has apositive impact on the economy because more disposable incometranslates to additional funds in circulation. Businesses thrive fromthe added expenditure, and the extra income translates to more taxesfor the government, and subsequent additional social amenities forthe society.

Thereexists a conventional wisdom that the families with a stay-at-homeparent provide the working parent with additional flexibility toprioritize their work, thereby making the most of their careers.However, this could not be any further from the truth. This familystructure comes with inflexibility since it only contains onebreadwinner who may be afraid or reluctant to leave or change jobsdue to the uncertainty that lies ahead. Sometimes, work situationsare such that an employee is unsatisfied and therefore undergoingemotional toil that extends to the family. In such an instance, theirproductivity at work also suffers because they cannot have maximumoutput under such conditions. In families where both partners areworking, one of them feels more flexible to respond to thevicissitudes of the labor market. Working under flexible conditionsgives more job satisfaction to the employee, often leading to moreproductivity (

Thearticle “Workingmothers are good for children-but the guilt trips will keep coming”byPolly Toynbeeappearedin The Guardian on 25thJune 2015. The author begins the article by telling the reader thatbased on a Harvard Business School study, working mothers proved tobe better for their children, with the results showing that thedaughters of such mothers ended up having better careers, more payand equal work relationships in comparison with those whose mothersstayed home. In addition, their sons turned out to be better men withmore involvement in their family affairs. However, she goes on towonder whether the better turn-out in her grown children couldrelieve them of the guilt and anxiety they feel for not being fullythere for them. The article goes on to claim how the modern workingmother is bashed by the community for neglecting her family, with thegovernment not making things better by introducing policies thatfavor working conditions for mothers.

PollyToynbee points out some articles that appeared in other dailies thatare not making it any easier by printing articles to show thatchildren are being neglected by their working mothers, and being leftin the care of nannies. The career mother is termed as a careerobsessive, while stay-at-home mothers are said to be “lazybenefit scroungers or rich, idle yummy mummies leaving children withnannies while they take spa days.”Oneof the articles from the Telegraph states that “stay-at-homemothers have the most worthwhile lives” whilethe Mail’s“Decline of the stay-at-home mother”all go out of their way to show that a working mother isirresponsible and cares less for her children. However, based on thearguments discussed earlier, it is more advantageous for the familyas well as the economy to have both partners working to earn anincome.


UNWomen. Facts and Figures: Economic Empowerment. Retrieved on 1stSeptember 2016 from

Meetingof the OECD Council at Ministerial Level, Paris (2012). GenderEquality in Education, Employment and Entrepreneurship: Final Reportto the MCM 2012. Retrieved on 1stApril 2016 from

WorldDevelopment Report 2012. Gender Equality and Development. Retrievedon 1stSeptember 2016 from

Toynbee,P. (2015).Working Mothers are good for children-but the guilt tripswill keep coming. The Guardian