Cost is any outlay made by a company to maintain its production process of goods or services (purchases of raw materials, transportation of products, etc.). Expense are all the disbursements or payments that the company makes to produce the product or service, but that are not directly linked to the manufacturing process (salaries of administrative personnel). The
The growth is an increase or increased somewhat and development indicates a transformation or evolution. In general terms, development is the result of sustained growth, which can lead to confusion between the two terms; however, there may be growth without associated development. Growth and development in economics The economic growth is defined as the rise in national income or per capita gross domestic product or
Salary and salary refer to the remuneration that a professional or worker receives from an employer in exchange for their work or services . However, salary and salary are not exact synonyms. Therefore, it is convenient to distinguish between them when talking about employee payroll and compensation systems in the accounting of a company. Salary Salary Definition Remuneration
Simple interest is that which is not added to the initial capital once the term of the investment or credit has expired. Compound interest is that which is added to the initial capital at the end of the investment or credit. The difference between simple interest and compound interest is that the simple one is
Offer is the amount of products and services available in a specific market. The higher the price, the higher the offer. Demand is the amount of products and services that you are trying to buy in a specific market. The higher the price, the lower the demand. Offer Demand Definition Quantity of goods available for sale in
The primary, secondary and tertiary sectors are the main categories of economic activities in a country. The primary sector includes activities related to obtaining natural resources, such as agriculture and fishing. The secondary or industrial sector is responsible for the transformation of resources from the primary sector, such as the textile and automobile industries. The tertiary sector encompasses the provision of services, such
Although on many occasions, especially in the usual language, strategy and tactics are used as synonyms, the truth is that they are very different. The strategy is the definition, organization, planning of an accumulation of actions on an almost global scale; the tactic, on the other hand, refers to the set of specific actions that will be implemented to
Few issues are as controversial as the differentiation of rich and poor countries . A reality that has its support in the economy, but that can also be perceived in other areas, absolutely related. Rich country Poor country Definition A rich country is one that has a high GDP, which is reflected in high human development indices and
The economic development is a concept related to improvements in the living conditions of the population. Instead, economic growth implies increased productivity and income, which can be seen in a multitude of indexes and schemes. Definition Examples Economic development Wealth is created in order to maintain or improve the well-being of individuals. The nation’s economic improvement translates into an increase
Interest is the cost of borrowing money, where the borrower pays a fee to the lender for the loan. Interest, usually expressed as a percentage, can be simple or compound. Simple interest is based on the principal amount of a loan or deposit. In contrast, compound interest is based on the principal amount and the interest that accrues
