ASSIGNMENT

JULIUS A. MANANGHAYA
9, 2015

JULY

BSEE-III
ENGR. LEONARDO V. TORRES
Economics Terminologies:
1. Demand - A schedule of how much consumers are willing and able to buy at all
possible prices during some time period.
2. Perfect Competition - describes markets such that no participants are large
enough to have the market power to set the price of a homogeneous product.
3. Monopoly - is a market structure in which there is only one producer/seller for a
product.
4. Oligopoly - a situation in which a particular market is controlled by a small group
of firms.
5. Supply - A schedule of how much producers are willing and able to sell at all
possible prices during some time period.
6. Fixed Costs - a cost that does not change with an increase or decrease in the
amount of goods or services produced. Fixed costs are expenses that have to be
paid by a company, independent of any business activity.
7. Variable Costs - are costs that change in proportion to the good or service that a
business produces. Variable costs are also the sum of marginal costs over all
units produced.
8. Incremental Cost - the encompassing change that a company experiences
within its balance sheet due to one additional unit of production. Also referred to
as "marginal cost".
9. Marginal Costs - is the change in the total cost that arises when the quantity
produced is incremented by one unit. That is, it is the cost of producing one more
unit of a good.
10. Sunk Costs - is a cost that has already been incurred and cannot be
recovered.
11. Opportunity cost - The next best alternative that must be given up when a
choice is made.
12. Recurring Cost - is one that occurs at regular intervals and is anticipated. The
cost to provide electricity to a production facility is a recurring cost.
13. Non-recurring Cost - is one that occurs at irregular intervals and is not generally
anticipated. The cost to replace a company vehicle damaged beyond repair in
an accident is a non-recurring cost.

14. Cash Cost a cash basis accounting cost recognition process that classifies
costs as they are paid for in cash, and is recognized in the general ledger at the
point of sale.
15. Book Cost - Amount recorded in account books as the total paid
for acquiring an asset.
16. Life Cycle Cost - refers to the total cost of ownership over the life of
an asset. Also commonly referred to as "cradle to grave" or "womb to tomb"
costs. Costs considered include the financial cost which is relatively simple to
calculate and also the environmental and social costs which are more difficult to
quantify and assign numerical values.
17. Accounting - The systematic and comprehensive recording of financial
transactions pertaining to a business. Accounting also refers to the process of
summarizing, analyzing and reporting these transactions.
18. Bookkeeping - is the recording of financial transactions, and is part of the
process of accounting in business. Transactions include purchases, sales,
receipts and payments by an individual or organization.
19. Assets - a resource with economic value that an individual, corporation or
country owns or controls with the expectation that it will provide future benefit. A
balance sheet item representing what a firm owns.
20. Liabilities - A company's legal debts or obligations that arise during the course of
business operations. Liabilities are settled over time through the transfer of
economic benefits including money, goods or services.
21. Net worth - the amount by which assets exceed liabilities. Net worth is a concept
applicable to individuals and businesses as a key measure of how much an entity
is worth.
22. Balance Sheet - A financial statement that summarizes a company's assets,
liabilities and shareholders' equity at a specific point in time. These three balance
sheet segments give investors an idea as to what the company owns and owes,
as well as the amount invested by the shareholders.
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity
23. Income Statement - a financial statement that measures a company's financial
performance over a specific accounting period.
24. Revenue - the amount of money that a company actually receives during a
specific period, including discounts and deductions for returned merchandise. It
is the "top line" or "gross income" figure from which costs are subtracted to
determine net income.

25. Expense - the economic costs that a business incurs through its operations to
earn revenue. Examples of expenses include payments to suppliers, employee
wages, factory leases and depreciation.
26. Income - The amount of money received during a period of time in exchange for
labor or services, from the sale of goods or property, or as a profit from financial
investments.
27. Debit - an accounting entry that results in either an increase in assets or a
decrease in liabilities on a company's balance sheet or in our bank account.
28. Credit - a contractual agreement in which a borrower receives something of
value now and agrees to repay the lender at some date in the future, generally
with interest. The term also refers to the borrowing capacity of an individual or
company.
29. Journal - is an essential part of objective record-keeping and allows for concise
review and records transfer later in the accounting process. Journals are often
reviewed as part of a trade or audit process, along with the general ledger(s).
30. Ledger - is the principal book or computer file for recording and totaling
economic transactions measured in terms of a monetary unit of account by
account type, with debits and credits in separate columns and a beginning
monetary balance and ending monetary balance for each account.
31. Cost Accounting - A type of accounting process that aims to capture a
company's costs of production by assessing the input costs of each step of
production as well as fixed costs such as depreciation of capital equipment. Cost
accounting will first measure and record these costs individually, then compare
input results to output or actual results to aid company management in
measuring financial performance.
32.
Interest - is a fee paid by a borrower of assets to the owner as a form of
compensation for the use of the asset. It is most commonly the price paid for the
use of borrowed money, or money earned by deposited funds.