Question

List the economic events in the conversion business process? Support your answer by providing the activities that is taking place in “economic decrement event”.

Answer 1

The economic activities are:

The production of goods and services. This is the conversion of inputs to output which maybe a further input to another business process. This process can be a multi staged process with many intermediate outputs. However the final output is a tangible good or a service.

Exchange of output. This involves sale of the produced output to consumers willing to buy it for money or other forms of non Fiat excahnge.

The final activity is that of consumption by the purchasers of the output. Hence a business cycle is made up of three processes production exchange and consumption.

The economic decrement is the process by which the quality and quantity of a particular product decreases over time.