allocating

Examples of allocating in the following topics:

• Allocative Efficiency

  • Free markets iterate towards higher levels of allocative efficiency, aligning the marginal cost of production with the marginal benefit for consumers.
  • Although there are different standards of evaluation for the concept of allocative efficiency, the basic principle asserts that in any economic system, choices in resource allocation produce both "winners" and "losers" relative to the choice being evaluated.
  • Under these basic premises, the goal of maximizing allocative efficiency can be defined according to some neutral principle where some allocations are objectively better than others.
  • For example, for the U.S. to achieve an allocative efficient market, it would need to produce a lot of coffee.
  • Explain resource allocation in terms of consumer and producer surplus and market equilibrium

• Introduction to the Economic Problem

  • To what extent do moral values guide the allocative process?
  • What social institutions are necessary for different allocative mechanisms to function?
  • Which allocative mechanisms are most appropriate for specific allocation tasks?
  • The questions about allocation and provisioning are interrelated.
  • Every society faces the problems of allocation and provisioning.

• Introduction

  • To what extent do moral values guide the allocative process?
  • What social institutions are necessary for different allocative mechanisms to function?
  • Which allocative mechanisms are most appropriate for specific allocation tasks?
  • The questions about allocation and provisioning are interrelated.
  • Every society faces the problems of allocation and provisioning.

• Depreciation

  • Depreciation is the process by which an asset is used up, and its cost is allocated over a period of time.
  • The allocation of the cost of an asset to periods in which it is used up affects net income.
  • Such costs must be allocated to the period of use.
  • The business records depreciation expense as an allocation of such costs for financial reporting.
  • Depreciation is any method of allocating net cost to those periods expected to benefit from use of the asset.

• Allocation, Provisioning and the Economic System

  • Economics as a study of the allocation problem is straightforward.
  • Given a set of resources, a state of technology, a group of individuals who have a set of preferences and a set of social (including economic) institutions, what is the optimal allocation of those resources.
  • There are the five basic allocation questions:
  • Provisioning is concerned with the social structure and the alternative ways in which the allocation problem is approached.

• Inputs to COGS

  • Costs of goods made by the business include material, labor, and allocated overhead.
  • Determining how much of each of these components to allocate to particular goods requires either tracking the particular costs or making some allocations of costs.
  • Labor costs may be allocated to an item or set of items based on timekeeping records.
  • Variable production overheads are allocated to units produced based on actual use of production facilities.
  • Fixed production overheads are often allocated based on normal capacities or expected production.

• Defining Finance

  • Finance is the study of fund management and asset allocation over time.
  • Finance is the study of fund management and asset allocation over time.
  • There are many different types of finance, but all are fundamentally concerned with studying how best to allocate assets in different conditions over time.
  • Charles Holley, the Chief Financial Officer (CFO) of Wal-Mart, is in charge of making sure all of Wal-Mart's assets are allocated as optimally as possible.

• Externalities and Impacts on Resource Allocation

  • Production and use of resources can have a positive or negative effect on the allocation of the natural resources.
  • Resource allocation is division of goods for the use of production within the economy.
  • In the long run, externalities directly impact resource allocation.
  • In regards to natural resources, production and use of resources can have a positive or negative effect on the allocation of the resources.
  • Examine externalities and how they the impact resource allocation of natural resources.

• Profitability analyses (e.g. by customer, product, region)

  • So, accountants try and develop some sort of reasonable method of allocating fixed and variable costs to customers.
  • The costs of renting and maintaining the physical store could reasonably be allocated to the customers who purchase goods in person, based on the number of visits or more likely on the amount of sales to each customer.
  • On-line customers could have the costs of developing and maintaining the website allocated to them.
  • Many companies prepare a similar type of analysis at the gross margin level and skip the step of trying to allocate costs to individual customers.
  • In this case, cost of goods sold is substituted for "allocated costs" in column three of Exhibit 40, and column four will show gross margin by customer instead of profitability by customer.

• Performance

  • The function of a market system is to provide the information and incentives that will result in the allocation of relatively scarce resources and goods to their highest valued use within a social system.
  • The optimal allocation of resources is characterized by the simple equation:
  • As market power is increased the price tends to rise above the MC suggesting less than an optimal allocation.