...U.S. Department of Commerce released fourth quarter real gross domestic product rates of 2014. According to the Bureau of Economic Analysis (2015), the value of produced goods and services in the U.S. increased 2.2 during this quarter (para. 1). This means that the production of goods adjusted for price changes for the period when the second estimate was released on February 27th. That is a 2.8 percent drop from 5.0 percent third quarter GDP results of 2014 (U.S. DOC, 2015, para. 1). As previously stated GDP measures the economy performance of the nation or country during a certain period of time (annual or quarterly). GDP measured in terms of dollars regard the total of all goods and services produced (McConnell, Brue, & Flynn, 2015); unfortunately, there are several shortcomings or limitations in measuring the total output or national welfare. The shortcomings of GDP measure both total output and total utility (McConnell, et al., 2015, p. 561); the total output shortcomings include non market activities (household production) such as homemaker services and parental childcare (Lee, n. d.; Toward, 2010). Non market activities are products and services that are produce by people and are not bought and sold on the market. Legal economic and illegal activities are underground activities, the second type of shortcoming of GDP. Underground activities consist of products or services purchased and sold to others and concealed from the government to evade paying taxes. On the...
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...most often synonymous with the progression and growth from lower economic status to that which is advanced it be of a community or country such that its productivity noticeably increases. Many scholars as such agree that growth in economic proficiency as is brought about by economic growth is a yardstick for development. It is on this particular premise that this paper shall endeavour to describe economic growth and further elaborate why it is considered a crucial element in defining development. In this light, the paper shall also attempt to highlight and explain the limitations of this approach in measuring development. Economic Growth- Defined As suggested above, economic growth is a factor in achieving development. An accurate description according to the IMF (2012) is that economic growth is a process that involves the increase in the amount of the goods and services produced by an economy over time which is conventionally measured as the percentage rate of increase in Gross Domestic Product (GDP). GDP is the What this approach therefore depicts is that for development to be considered to have taken place, there should be an increase in the capability of an economy to produce goods and services, as compared from one period of time to another. This increase must be measurable with respect to the productive output of each sector of the economy. In relation to this, Todaro and Smith (2011) state that economic growth has three essential components, namely: • Capital...
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...Whatever the definitions given by all the researchers, they all bring about to the same meaning and understanding. Based on my understanding, measurement is the process of observing, recording and calculating the observations that are collected as part of a research effort which is usually represented by units. These units possess values and are often numerical. Importance Everyone uses measurement without even noticing it sometimes. In studying measurement theory, I realised that measurement involve in many of our daily activities without us even noticing it sometimes. Some examples include measuring our heights and weights, measuring the nearest and shortest distance to get to class, measuring the time taken to complete an assignment and many more. Therefore, it can be said that measurement theory is definitely important and useful for everyone. Understanding the importance of measurement theory is crucial to address issues in business, accounting, social and economics. Importance of measurement in Accounting Why is measurement theory important? Well, it is important for three simple reasons. It is important to make decisions, assess performance and positions and make comparisons. Let’s look at accounting perspective first. In accounting, almost everything is being measured which includes expenses, revenues, assets, liabilities and profits. Accountants use measurements to report information to internal and external users via financial statements. Financial accounting measurements...
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...According to NY Government (n.d.) website, “Strategic, performance measurement-based management systems allow an organization to align its business activities to its strategy, and to monitor performance toward strategic goals over time” (para. 1). Each measurement should be objective, easy to understand, controllable by minimizing outside influences, timely, accurate, cost-effective, useful, motivating, and trackable (NY Government, n.d.). The use of performance measurement is important because the stock market’s volatility has shown that financial measurement is not the only measurement. By using measurement techniques companies can compare themselves to established norms. In this discussion there will be a look at three different types of performance measurement systems, what they do and how they are used. These systems identified are the balanced scorecard, performance dashboards, and the economic value added. The balanced scorecard is a strategic planning and management measurement style widely used throughout the business world to bring its business activities in line with the vision and strategy of the organization (Balanced Scorecard Institute, 1998-2010). According to the Balanced Scorecard Institute (1998-2010) the implementation increases focus on strategy and results, increases organizational performance by measuring what is important, and aligns strategy with what people do in their day-to-day work. It also focuses on the drivers of future performance, improves...
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...Business Sustainability Alternate measure for Economic Performance Jayant Kumar Preface An indicator is something that helps one to understand inclusive position, the path and how far one is from the point they want to be. A good indicator gives the alert about the problem before it gets too bad and helps to recognize things to do in-order to fix it. Indicators of sustainable community point to areas where the links between the economy, environment and society are weak. It allows one to identify the problematic area and helps the ways to fix restore it. GDP and profit currently dominate society’s discussions of economic performance. They shape the way people think about the economy and business, affecting their behavior and the actual outcomes of economic activity. So what is economic success? Going beyond GDP and profit will explore what we mean by economic success, the role that GDP and profit play in this, and the potential for broader measures of economic success to help us balance our economic priorities, our social goals, and the constraints imposed on us by the natural environment we live in. 1 Current measure of Performance Right measurement is a powerful instrument for social progress; wrong or imprecise measurement a source of hazard and even havoc. Two main measure of economic success are currently are GDP at the national level and profit at the Organizational level. GDP is the value added measure that is broader than Profit. GDP and profit are contested...
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...classified and analyzed. The first studies on the economic impact of port activity emerged in the United States in the second half of the 1960s. The ports of New York and New Jersey were the first to be taken into consideration. In the 1970s, the first methodological discussions took place, based on the development of the input–output model and its application to the measurement of the impact of ports. The main stances opposing this kind of study were advocated by Robert C. Waters, while those in favour had Semoon Chang as their main champion, and most of Waters’ criticisms were dealt with. 1. PORT ECONOMIC IMPACTS Ports contribute much to their economies, and port economic impact analysis is the major tool for documenting those contributions. The primary objective of port impact studies is to inform the public of the importance of port services, and additional benefits that may exist vary with particular studies. And also, the decision of local governmental agencies to construct port facilities is often preceded by a port economic impact study. The majority of existing port impact studies begin with definitions of port impacts, as an improper notion of port impact might well lead to an entirely wrong estimation of the total economic impact of a port. One of the major challenges in port impact studies is to identify the port-related industries and find out the degree of port dependency of these industries. Generally, economic impacts of port on the local economy can be divided...
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...Business Finance & Accounting The American Accounting Association define accounting as follows: "the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information! Let's look at the key words in the above definition: - It suggests that accounting is about providing information to others. Accounting information is economic information - it relates to the financial or economic activities of the business or organisation. - Accounting information needs to be identified and measured. This is done by way of a "set of accounts", based on a system of accounting known as double-entry bookkeeping. The accounting system identifies and records "accounting transactions". - The "measurement" of accounting information is not a straight-forward process. it involves making judgements about the value of assets owned by a business or liabilities owed by a business. it is also about accurately measuring how much profit or loss has been made by a business in a particular period. As we will see, the measurement of accounting information often requires subjective judgement to come to a conclusion - The definition identifies the need for accounting information to be communicated. The way in which this communication is achieved may vary. There are several forms of accounting communication (e.g. annual report and accounts, management accounting reports) each of which serve a slightly different purpose. The communication...
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...Measuring Economic Health All economies share similar economic goals, which consist of three key essentials, such as growth, employment, and price stability. Some economist’s measure the performance of an economy is by looking at a widely used measure of total output called gross domestic product. As the economy runs and functions business cycles are made and these business cycles are measured in the gross domestic product figures. Plainly stated, gross domestic product, is a figure that signifies the total value of products which have been produced in a country on a given year. The percentage increase or decrease in the gross domestic product figure is a way of measuring and gauging the level of business cycle. By itself, GDP doesn’t necessarily tell us much about the state of the economy; however, the change in GPD does. If the GPD goes up, therefore the economy is growing, but if the does the opposite, such as the GPD declines, the economy is contracting. Furthermore, once the growth of the gross domestic product figure shows an increase from the last period, one can say that a majority of businesses in the country have expanded or have increased their operations. This is known as prosperity and to be an upward trend for the business activities in the economy. However, when the opposite happens, when there is a decline in the gross domestic product figure, then, it is considered to be a business recession, therefore, business activities have decreased. A depression...
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...Measuring Economic Health Memo Christina Roddey ECO/212 June 13, 2011 Luis Torres Introduction When it comes to measuring economic health, there are important things to remember. Gross Domestic Product (GDP) is primary used to measure the economy’s health. Fiscal policies are organized by the government to figure out what caused the unhealthy changes in the economy. The Use of Gross Domestic Product Gross Domestic Product (GDP) is a measure of the gross national output; it’s a cumulative of all the consumption of the all the consumption of the all households in an economy. The consumption or spending by the government into different economic welfare activities such as education, healthcare, welfare and military, private domestic investments in way of new projects and buying capital goods and a net current account balances. The business cycle is the growing and shrinking of the economy. When measuring a business cycle, it changes in real GDP which focus on the changes in output. There are four parts of the business cycle which are – peak, contraction, trough, and expansion. Information has to be collected after a certain time frame is completed, in which, the business cycles are next translated between the changing periods of economic recession or economic expansion. Roles of Government Bodies National fiscal policies are arranged by the President and Congress. They have steps that helps determine the policies. First, the U.S. Government Accountability...
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...BRIEFING FOR MEMBERS MEASURING SOCIAL VALUE What do we mean by measuring social value? Over the last twenty years there has been increasing importance attached to measuring the social value and social impact that various organisations create. The demand for measuring this value comes from all sides: funders who want to direct their money to the most effective projects, policy makers and government officials have to account for their spending decisions, and social organisations need to demonstrate their impact to funders, partners and beneficiaries1. This has led to a growing interest in terms such as „value for money‟, „value added‟ and „outcomes‟ as ways to measure a organisations performance. In many ways the distinction between „output‟ and „outcomes‟ encapsulates what is meant by measuring social value. Outputs: These are the activities done by an organisation, usually listed in an action plan or set of objectives. For example providing homeless people with food and shelter or organising a conference to discuss long term care services for the elderly. Outcomes: These are the long term observed effects of the outputs and are often the „real‟ changes that organisations are trying to make. For example homeless people no longer living on the street and now in employment is an outcome. Likewise a new policy implemented by a government or a new project that improves the quality of long term care for elderly people is an outcome. Unfortunately there is no single authoritative definition...
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...Reflection Economic Forecasting ECO/372 May 20, 2013 Jamey Burnett Economic Forecasting Economic Forecasting is a process, which is used for making predictions about the economy. Economic forecasting is used to predict Gross Domestic Product, inflation, and unemployment ("Us Department Of Commerce Bureau Of Economic Analysis", n,d.). Here is a list of resources that can be used to gather historical economic date as well as forecast data; Bureau of Economic Analysis, Bureau of Labor Statistics, U. S. Department of Labor, U. S. Census Bureau, National Association of Purchasing Managers, Survey Research Center, University of Michigan, Standard & Poor’s, S&P 500, and the Federal Reserve. In the report we will focus on the Bureau of Economic Analysis, quantitative and qualitative forecasting, and Bureau of labor statistics. Bureau of Economic Analysis Bureau of Economic Analysis is the federal agency responsible for measuring the United States economy. BEA is responsible for what is produced, what is earned and how it is spent ("What Is the U.S. Bureau of Economic Analysis?" 2012). BEA provides a variety of economic statistics concerning national, international, and regional economic activity. BEA also provides statistics decisions that are influenced by government officials, businesspeople, households, and individuals. The Bureau of Economic Analysis contains both quantitative and qualitative forecasting factors. The Bureau of Economic Analysis is...
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...planet that supports and sustains human life. The human activities carried out on the planet are gradually making the planet unfavorable to live on (Perman 81). Ecology involves the study of relationships between living organisms and their usual natural environment. This paper will define ecological footprint, present a deep understanding of the ecological footprint and show how it applies in measuring the peoples’ effects to the environment. The paper will also explain how the ecological footprint can be used in making choices that go in line with people’s lifestyles. The principles of ecological footprint date back to literatures related to geography, ecology and economics. However, the idea of the earth’s ecological footprint has been present since early 90’s (Wackernagel 35). William Rees in 1992 produced the first academic publication on ecological footprint. The concept of ecological footprint and calculation criteria was later developed by Mathis Wackernagel as a PhD dissertation under the supervision of Rees at British Columbia University in Vancouver. Originally, the concept was called the appropriated carrying capacity. Rees later came up with the ecological footprint term in order to ensure that the concept is accessible. The ecological footprint in the planet has transpired as the earth’s vital gauge of the individual’s demand on the environment and the entire nature. It is used in measuring the amount of land and area under water that the human population...
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...International Labour Office Global child labour developments: Measuring trends from 2004 to 2008 Yacouba Diallo, Frank Hagemann, Alex Etienne, Yonca Gurbuzer and Farhad Mehran Statistical Information and Monitoring Programme on Child Labour (SIMPOC) International Programme on the Elimination of Child Labour (IPEC) Global child labour developments: Measuring trends from 2004 to 2008 Yacouba Diallo, Frank Hagemann, Alex Etienne, Yonca Gurbuzer and Farhad Mehran Copyright © International Labour Organization 2010 First published 2010 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: pubdroit@ilo.org. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Diallo, Yacouba; Hagemann, Frank; Etienne, Alex; Gurbuzer, Yonca; Mehran, Farhad Global child labour developments: Measuring trends from 2004 to 2008 / Yacouba Diallo, Frank Hagemann,...
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...performance is the effect of corporate activity on the social, environmental, and economic fabric of society. ▪ A balance between economic progress, social responsibility, and environmental protection, sometimes referred to as the triple bottom line, can lead to competitive advantage. ▪ The evaluation of social, economic, and environmental impacts of organizational actions is necessary to make effective operational and capital investment decisions that positively impact organizational objectives and satisfy the objectives of multiple stakeholders. ▪ The financial payoff of a proactive sustainability strategy can be substantial. ▪ To become a leader in sustainability, one needs to articulate what sustainability is, develop processes to promote sustainability throughout the corporation, measure performance on sustainability, and ultimately link this measurement to corporate financial performance. ▪ Corporate citizenship is an important driver for building trust, attracting and retaining employees, and obtaining a “license to operate” within a community. ▪ Corporate citizenship is much more than charitable donations and public relations—it’s the way the company integrates sustainability principles with everyday business operations and policies and then translates all of this into bottom-line results. ▪ For sustainability to be long lasting and useful, it must be representative of and integrated into day-to-day corporate activities and corporate performance. ...
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...performance is the effect of corporate activity on the social, environmental, and economic fabric of society. ▪ A balance between economic progress, social responsibility, and environmental protection, sometimes referred to as the triple bottom line, can lead to competitive advantage. ▪ The evaluation of social, economic, and environmental impacts of organizational actions is necessary to make effective operational and capital investment decisions that positively impact organizational objectives and satisfy the objectives of multiple stakeholders. ▪ The financial payoff of a proactive sustainability strategy can be substantial. ▪ To become a leader in sustainability, one needs to articulate what sustainability is, develop processes to promote sustainability throughout the corporation, measure performance on sustainability, and ultimately link this measurement to corporate financial performance. ▪ Corporate citizenship is an important driver for building trust, attracting and retaining employees, and obtaining a “license to operate” within a community. ▪ Corporate citizenship is much more than charitable donations and public relations—it’s the way the company integrates sustainability principles with everyday business operations and policies and then translates all of this into bottom-line results. ▪ For sustainability to be long lasting and useful, it must be representative of and integrated into day-to-day corporate activities and corporate performance. ...
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