Asked by: Edu Lopez De Vicuña
asked in category: General Last Updated: 6th January, 2020

What is a physical flow?

The physical flow, the physical movement of goods and services, is the foundation of the circular flow model. The fundamental problem of scarcity is addressed by physically transforming scarce resources into goods and services that are then used to satisfy wants and needs.

Click to see full answer.

People also ask, what is the meaning of information flow?

Information flow is the movement of information between people and systems. Efficient and secure information flows are a central factor in the performance of decision making, processes and communications. The following are common types of information flow.

Subsequently, question is, what is money flow in economics? Real flows refer to the flow of the actual goods or services, while money flows refer to the payments for the services (wages, for example) or consumption payments.

Secondly, what relationship exists between cost flows and the physical flow of goods in a company?

The cost flow assumptions have no relation to the physical flow of the goods in a company. The assumptions are used to assign costs to inventory units.

Which assumed inventory cost flow method?

The inventory cost flow assumption states that the cost of an inventory item changes from when it is acquired or built and when it is sold. FIFO cost flow assumption. Under the first in, first out method, you assume that the first item purchased is also the first one sold. Thus, the cost of goods sold would be $50.

34 Related Question Answers Found

What is the correct order of information flow?

How does information flow?

What is communication flow?

What is promotion flow?

What is flow of information in an organization?

How do you map information flow?

What is information flow continuity?

What is logistic information flow?

What is cost flow assumption?

Why are cost flow assumptions needed?

How does a company determine what cost flow assumption they should use?

What are the major types of period costs incurred by a manufacturer?

What are the two main flows in an economy?

What is the best money flow indicator?