17 A business income statement for the year ended 31 December 2004 showed a net profit of $83,600. It was later
Income
Income may be national income and personal income. Whereas national income is defined as the total earned income of all the factors of production-namely, profits, interest, rent, wages, and other compensation for labor, personal income may be defined as total money income received by individuals before personal taxes are paid. National income does not equal GNP (Gross National Product) because the factors of production do not receive payment for either capital consumption allowances or indirect business taxes, both of which are included in GNP. The money put aside for capital consumption is for replacement and thus is not counted as income. Indirect taxes include sales taxes, property taxes , and excise taxes that are paid by businesses directly to the government and so reduce the income left to pay for the factors of production. Three-fourths of national income goes for wages, salaries, and other forms of compensation to employees.
Whereas national income shows the income that the factors of production earn, personal income measures the income that individuals or households receive. Corporation profits are included in national income because they are earned. Out of these profits, however, corporation profit taxes must be paid to the government, and some money must be put into the business for expansion. Only that part of profits distributed as dividends goes to the individual; therefore, out of corporation profits only dividends count as personal income. The factors of production earn money for social security and unemployment insurance contributions, but this money goes to government (which is not a factor of production), not to individuals. It is therefore part of national income but not part of personal income.
On the other hand, money received by individuals when they collect social security or unemployment compensation is not money earned but money received. Interest received on government bonds is also in this category, because much of the money received from the sale of bonds went to pay for war production and that production no longer furnishes a service to the economy.
The money people receive as personal income may be either spent or saved. However, not all spending is completely voluntary. A significant portion of our income goes to pay personal taxes. Most workers never receive the money they pay in personal taxes, because it is withheld from their paychecks. The money that individuals are left with after they have met their tax obligations is disposable personal income. Disposable income can be divided between personal consumption expenditures and personal savings. It is important to remember that personal saving is what is left after spending.
Income
Income may be national income and personal income. Whereas national income is defined as the total earned income of all the factors of production-namely, profits, interest, rent, wages, and other compensation for labor, personal income may be defined as total money income received by individuals before personal taxes are paid. National income does not equal GNP (Gross National Product) because the factors of production do not receive payment for either capital consumption allowances or indirect business taxes, both of which are included in GNP. The money put aside for capital consumption is for replacement and thus is not counted as income. Indirect taxes include sales taxes, property taxes , and excise taxes that are paid by businesses directly to the government and so reduce the income left to pay for the factors of production. Three-fourths of national income goes for wages, salaries, and other forms of compensation to employees.
Whereas national income shows the income that the factors of production earn, personal income measures the income that individuals or households receive. Corporation profits are included in national income because they are earned. Out of these profits, however, corporation profit taxes must be paid to the government, and some money must be put into the business for expansion. Only that part of profits distributed as dividends goes to the individual; therefore, out of corporation profits only dividends count as personal income. The factors of production earn money for social security and unemployment insurance contributions, but this money goes to government (which is not a factor of production), not to individuals. It is therefore part of national income but not part of personal income.
On the other hand, money received by individuals when they collect social security or unemployment compensation is not money earned but money received. Interest received on government bonds is also in this category, because much of the money received from the sale of bonds went to pay for war production and that production no longer furnishes a service to the economy.
The money people receive as personal income may be either spent or saved. However, not all spending is completely voluntary. A significant portion of our income goes to pay personal taxes. Most workers never receive the money they pay in personal taxes, because it is withheld from their paychecks. The money that individuals are left with after they have met their tax obligations is disposable personal income. Disposable income can be divided between personal consumption expenditures and personal savings. It is important to remember that personal saving is what is left after spending.
Income
Income may be national income and personal income. Whereas national income is defined as the total earned income of all the factors of production-namely, profits, interest, rent, wages, and other compensation for labor, personal income may be defined as total money income received by individuals before personal taxes are paid. National income does not equal GNP (Gross National Product) because the factors of production do not receive payment for either capital consumption allowances or indirect business taxes, both of which are included in GNP. The money put aside for capital consumption is for replacement and thus is not counted as income. Indirect taxes include sales taxes, property taxes , and excise taxes that are paid by businesses directly to the government and so reduce the income left to pay for the factors of production. Three-fourths of national income goes for wages, salaries, and other forms of compensation to employees.
Whereas national income shows the income that the factors of production earn, personal income measures the income that individuals or households receive. Corporation profits are included in national income because they are earned. Out of these profits, however, corporation profit taxes must be paid to the government, and some money must be put into the business for expansion. Only that part of profits distributed as dividends goes to the individual; therefore, out of corporation profits only dividends count as personal income. The factors of production earn money for social security and unemployment insurance contributions, but this money goes to government (which is not a factor of production), not to individuals. It is therefore part of national income but not part of personal income.
On the other hand, money received by individuals when they collect social security or unemployment compensation is not money earned but money received. Interest received on government bonds is also in this category, because much of the money received from the sale of bonds went to pay for war production and that production no longer furnishes a service to the economy.
The money people receive as personal income may be either spent or saved. However, not all spending is completely voluntary. A significant portion of our income goes to pay personal taxes. Most workers never receive the money they pay in personal taxes, because it is withheld from their paychecks. The money that individuals are left with after they have met their tax obligations is disposable personal income. Disposable income can be divided between personal consumption expenditures and personal savings. It is important to remember that personal saving is what is left after spending.
Income
Income may be national income and personal income. Whereas national income is defined as the total earned income of all the factors of production-namely, profits, interest, rent, wages, and other compensation for labor, personal income may be defined as total money income received by individuals before personal taxes are paid. National income does not equal GNP (Gross National Product) because the factors of production do not receive payment for either capital consumption allowances or indirect business taxes, both of which are included in GNP. The money put aside for capital consumption is for replacement and thus is not counted as income. Indirect taxes include sales taxes, property taxes , and excise taxes that are paid by businesses directly to the government and so reduce the income left to pay for the factors of production. Three-fourths of national income goes for wages, salaries, and other forms of compensation to employees.
Whereas national income shows the income that the factors of production earn, personal income measures the income that individuals or households receive. Corporation profits are included in national income because they are earned. Out of these profits, however, corporation profit taxes must be paid to the government, and some money must be put into the business for expansion. Only that part of profits distributed as dividends goes to the individual; therefore, out of corporation profits only dividends count as personal income. The factors of production earn money for social security and unemployment insurance contributions, but this money goes to government (which is not a factor of production), not to individuals. It is therefore part of national income but not part of personal income.
On the other hand, money received by individuals when they collect social security or unemployment compensation is not money earned but money received. Interest received on government bonds is also in this category, because much of the money received from the sale of bonds went to pay for war production and that production no longer furnishes a service to the economy.
The money people receive as personal income may be either spent or saved. However, not all spending is completely voluntary. A significant portion of our income goes to pay personal taxes. Most workers never receive the money they pay in personal taxes, because it is withheld from their paychecks. The money that individuals are left with after they have met their tax obligations is disposable personal income. Disposable income can be divided between personal consumption expenditures and personal savings. It is important to remember that personal saving is what is left after spending.
Income
Income may be national income and personal income. Whereas national income is defined as the total earned income of all the factors of production-namely, profits, interest, rent, wages, and other compensation for labor, personal income may be defined as total money income received by individuals before personal taxes are paid. National income does not equal GNP (Gross National Product) because the factors of production do not receive payment for either capital consumption allowances or indirect business taxes, both of which are included in GNP. The money put aside for capital consumption is for replacement and thus is not counted as income. Indirect taxes include sales taxes, property taxes , and excise taxes that are paid by businesses directly to the government and so reduce the income left to pay for the factors of production. Three-fourths of national income goes for wages, salaries, and other forms of compensation to employees.
Whereas national income shows the income that the factors of production earn, personal income measures the income that individuals or households receive. Corporation profits are included in national income because they are earned. Out of these profits, however, corporation profit taxes must be paid to the government, and some money must be put into the business for expansion. Only that part of profits distributed as dividends goes to the individual; therefore, out of corporation profits only dividends count as personal income. The factors of production earn money for social security and unemployment insurance contributions, but this money goes to government (which is not a factor of production), not to individuals. It is therefore part of national income but not part of personal income.
On the other hand, money received by individuals when they collect social security or unemployment compensation is not money earned but money received. Interest received on government bonds is also in this category, because much of the money received from the sale of bonds went to pay for war production and that production no longer furnishes a service to the economy.
The money people receive as personal income may be either spent or saved. However, not all spending is completely voluntary. A significant portion of our income goes to pay personal taxes. Most workers never receive the money they pay in personal taxes, because it is withheld from their paychecks. The money that individuals are left with after they have met their tax obligations is disposable personal income. Disposable income can be divided between personal consumption expenditures and personal savings. It is important to remember that personal saving is what is left after spending.
Creating the Logistics Vision Nowadays,most companies are familiar with the idea of "mission statement"as an expression of setting a vision for the business.The mission statement seeks to define the pur-pose of the business,its boundaries and its aspirations.It is now common for organizations to have such statement for the business as a whole and for key constituent components.What some companies have found is that there can be significant benefits to defining the lo-gistics vision of the firm. The purpose of the logistics vision statement is to give a clear indication which business intends to build a position of advantage through closer customer relationship.Such state-ment is never easy to construct.There is always the danger that they will publish the ener-getic and encouraging declaration that give everyone a warm feeling but provide no guideline for action. Ideally the logistics vision should be built around the simple issue of"How do we intend to use logistics and supply chain management to create value for our customers?"To realize this idea will necessitate a detailed understanding of how customer value is created and deliv-ered in the market in which the business competes.Value chain analysis will be a fundamen-tal element in this investigation as will the definition of the core competencies and capabilities of the organization.Asking the question"What activities dowe excel in?"and"What is it that differentiates us from our competitors?"is the starting point for creating the logistics vision statement. Earlier,it was suggested that the three words"Better,Faster,Cheaper"summarizes the ways in which logistics vision statement can provide value for customers.The criterion for good logistics vision statement is that it should provide the road map for how these three goals are to be achieved． Questions:
How should a logistics vision statement add value to its customers？（）Creating the Logistics Vision Nowadays,most companies are familiar with the idea of "mission statement"as an expression of setting a vision for the business.The mission statement seeks to define the pur-pose of the business,its boundaries and its aspirations.It is now common for organizations to have such statement for the business as a whole and for key constituent components.What some companies have found is that there can be significant benefits to defining the lo-gistics vision of the firm. The purpose of the logistics vision statement is to give a clear indication which business intends to build a position of advantage through closer customer relationship.Such state-ment is never easy to construct.There is always the danger that they will publish the ener-getic and encouraging declaration that give everyone a warm feeling but provide no guideline for action. Ideally the logistics vision should be built around the simple issue of"How do we intend to use logistics and supply chain management to create value for our customers?"To realize this idea will necessitate a detailed understanding of how customer value is created and deliv-ered in the market in which the business competes.Value chain analysis will be a fundamen-tal element in this investigation as will the definition of the core competencies and capabilities of the organization.Asking the question"What activities dowe excel in?"and"What is it that differentiates us from our competitors?"is the starting point for creating the logistics vision statement. Earlier,it was suggested that the three words"Better,Faster,Cheaper"summarizes the ways in which logistics vision statement can provide value for customers.The criterion for good logistics vision statement is that it should provide the road map for how these three goals are to be achieved． Questions:
What does mission statement intend to do？（）Creating the Logistics Vision Nowadays,most companies are familiar with the idea of "mission statement"as an expression of setting a vision for the business.The mission statement seeks to define the pur-pose of the business,its boundaries and its aspirations.It is now common for organizations to have such statement for the business as a whole and for key constituent components.What some companies have found is that there can be significant benefits to defining the lo-gistics vision of the firm. The purpose of the logistics vision statement is to give a clear indication which business intends to build a position of advantage through closer customer relationship.Such state-ment is never easy to construct.There is always the danger that they will publish the ener-getic and encouraging declaration that give everyone a warm feeling but provide no guideline for action. Ideally the logistics vision should be built around the simple issue of"How do we intend to use logistics and supply chain management to create value for our customers?"To realize this idea will necessitate a detailed understanding of how customer value is created and deliv-ered in the market in which the business competes.Value chain analysis will be a fundamen-tal element in this investigation as will the definition of the core competencies and capabilities of the organization.Asking the question"What activities dowe excel in?"and"What is it that differentiates us from our competitors?"is the starting point for creating the logistics vision statement. Earlier,it was suggested that the three words"Better,Faster,Cheaper"summarizes the ways in which logistics vision statement can provide value for customers.The criterion for good logistics vision statement is that it should provide the road map for how these three goals are to be achieved． Questions:
What kind of goals can mission statement fail to achieve？（）Creating the Logistics Vision Nowadays,most companies are familiar with the idea of "mission statement"as an expression of setting a vision for the business.The mission statement seeks to define the pur-pose of the business,its boundaries and its aspirations.It is now common for organizations to have such statement for the business as a whole and for key constituent components.What some companies have found is that there can be significant benefits to defining the lo-gistics vision of the firm. The purpose of the logistics vision statement is to give a clear indication which business intends to build a position of advantage through closer customer relationship.Such state-ment is never easy to construct.There is always the danger that they will publish the ener-getic and encouraging declaration that give everyone a warm feeling but provide no guideline for action. Ideally the logistics vision should be built around the simple issue of"How do we intend to use logistics and supply chain management to create value for our customers?"To realize this idea will necessitate a detailed understanding of how customer value is created and deliv-ered in the market in which the business competes.Value chain analysis will be a fundamen-tal element in this investigation as will the definition of the core competencies and capabilities of the organization.Asking the question"What activities dowe excel in?"and"What is it that differentiates us from our competitors?"is the starting point for creating the logistics vision statement. Earlier,it was suggested that the three words"Better,Faster,Cheaper"summarizes the ways in which logistics vision statement can provide value for customers.The criterion for good logistics vision statement is that it should provide the road map for how these three goals are to be achieved． Questions:
What should a logistics mission statement provide？（）Creating the Logistics Vision Nowadays,most companies are familiar with the idea of "mission statement"as an expression of setting a vision for the business.The mission statement seeks to define the pur-pose of the business,its boundaries and its aspirations.It is now common for organizations to have such statement for the business as a whole and for key constituent components.What some companies have found is that there can be significant benefits to defining the lo-gistics vision of the firm. The purpose of the logistics vision statement is to give a clear indication which business intends to build a position of advantage through closer customer relationship.Such state-ment is never easy to construct.There is always the danger that they will publish the ener-getic and encouraging declaration that give everyone a warm feeling but provide no guideline for action. Ideally the logistics vision should be built around the simple issue of"How do we intend to use logistics and supply chain management to create value for our customers?"To realize this idea will necessitate a detailed understanding of how customer value is created and deliv-ered in the market in which the business competes.Value chain analysis will be a fundamen-tal element in this investigation as will the definition of the core competencies and capabilities of the organization.Asking the question"What activities dowe excel in?"and"What is it that differentiates us from our competitors?"is the starting point for creating the logistics vision statement. Earlier,it was suggested that the three words"Better,Faster,Cheaper"summarizes the ways in which logistics vision statement can provide value for customers.The criterion for good logistics vision statement is that it should provide the road map for how these three goals are to be achieved． Questions:
Which element should a logistics mtssion statement focus on？（）By the end of the year, the sales plan for the next year______.
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