Production and Costs
When it comes to business there are certain factors that I would consider that goes into making a product such as factors of production and fixed and variable costs that go into that production. For the Apple IPhone there are four factors of production that come to my mind when producing a product like the IPhone. Factors such as management, machines, materials and money. These four factors of production are what go into making the IPhone itself. When translated these four categories can be translated into land, labor, capital, and enterprise. When an organization is being ran they have to consider what are its fixed costs and what are its variable costs. These factors of production along with fixed and variable costs are what make a business like Apple efficient.
“Management can be defined in various ways. In the words of Pride et al, management is the process of coordinating the resources of the organization to achieve the primary goals of the organization. It is also defined as the organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of defined objectives.” Management is also the ability of an organization control all of its natural resources efficiently in order for the business run. The management of resources would be considered a variable cost because overtime things began to change due to certain factors such as having enough resources or over and under paying for those resources. Overall those costs tend to become fixed seeing that those resources do not change.
Machines are what is considered to be labor. Labor is anything considered to be a human resource. Human resources are what’s needed in order for things to work within a company. “It is described as any human work which is performed with the help of mind or physique with a view to earn income". So within Apple you have people who work on an assembly line in order to keep things moving throughout the...