Normal goods are those whose demand increases as consumer income grows. Although there are several classes of consumer goodsand services within a economía, most of these are classified as normal goods. These types of goods are usually governed by the Normal Law of Demand in which income and demand are proportional, but in addition to … Read more
The concept of gross margin refers to the direct benefit that a company obtains from a service or good. To calculate it, the difference between the sale price of the item excluding VAT and the production cost must be taken into account. This term is also known as profit margin. It is generally calculated as … Read more
When we talk about gross added value we refer to a macroeconomic magnitude to measure the total value that has been created in a given country or territory. The value created is measured according to goods and services that companies in that country have been able to produce during a specific period of time, and … Read more
Not all goods that are traded in the market have the same importance or have the same characteristics among them. Today we are going to talk to you about one of these types of goods: the inferior good. When we speak of inferior good we refer to goods that, by increasing people's income, demand of … Read more
Talking about objectives, from an economic point of view, must necessarily refer to the objectives of the company. The objectives are the goals to be achieved, and can refer to multiple variables. For example, one can speak of production objectives, as well as objectives related to each of the company's products or services. But also, … Read more
In the hotel sector, the concept GOP, acronym for Gross Operating Profit, is widely used. In Spanish, the Gross Operating Result is used more frequently to refer to the same term. The meaning of GOP is the result of subtracting direct costs, indirect costs, payroll and direct operating expenses from total income. This financial indicator … Read more
Knowing fully all the economic concepts that exist to apply it to our company is not entirely easy. However, there are institutions or some entities that can help us to do so, when managing our company. An agency helps individuals (autonomous) and companies offering management services to those who need it. The agency helps, primarily, … Read more
As its name indicates, the concept of General Accounting Plan refers to the current legal regulations on accounting that govern companies in the same country. He General accounting plan It is an exhaustive text that defines the set of rules related to financial operations. In the case of Spain, the current plan has been updated … Read more
The concept of goodwill refers to the intangible asset indefinite that has the ability to create profits for a company over time. They refer above all to brand value, prestige, employee relations, customer base, recognition, etc. Although the value of goodwill is inherent in a company, it is only recorded after the purchase of a … Read more
The meaning of the Gini index, or Gini coefficient is an indicator developed by the Italian statistician Correado Gini that is used to measure the level of inequality between the inhabitants of a territory, which is usually a country. In general, its use is concentrated in the field of economía to analyze the differences in … Read more
