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.

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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.

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