Quantitative easing: Fed also buys financial assets from banks-> widens array of securities purchased.Ĭhart with demand for money as down sloping, MS as vertical line, Q of Money as X and IR as Y. DR down means MS up, IR down, and AD up.ģ) Changes in required reserve ratio: RRR up means MS down RRR down means MS up. MS down, IR up, AD down- Contractionary.Ģ) Changes in the discount rate: DR up means MS down, IR up, and AD down. Increase MS, Decrease IR, Increase AD- Expansionaryī) Decrease MS by selling govt securities. Three ways for Federal Reserve to use policy to change GDP:Ī) Increase in Money Supply by purchasing govt securities.
M2: M1 plus liquid assets that cannot be used as a medium of exchange by that can easily be converted into M1: time CDs less than 100K, money market deposit accounts at banks, mutual fund accounts, and savings accounts. M1: Money that is used for goods and services: Coins, currency, checking accounts, and traveler's checks.
Money supply is the stock of all liquid assets available for transactions in the economy at any given time. Different from data administrator which is responsible for the definition, planning, and control of the data within a database.ī) Network Administrator: Support computer networks though performance monitoring and troubleshooting.Ĭ) Web Administrator: Responsible for information on a website.ĩ) Data Input Clerk: prepare, verify, and input data to be processed function can be distributed to the end users.ġ0) Hardware technician: sets up and configures hardware and troubleshoots any resulting hardware problems.ġ1) End user: any workers in an organization who enter data into a system or who use the information processed by the system.
Step-down Method: Service department costs also allocated to other service departments, no give back though.ġ) Systems Analyst: If internally developed system-> determine requirements, design the system, determine network type If purchased-> integrates application with existing applications, provides trainingĪ) Application Programmer/Software Developer (engineer): writing and/or maintaining application programsī) System Programmer: installing, supporting, monitoring, and maintaining the operating system.ģ) Computer Operator: Archaic Scheduling and running processing jobs usually automated.Ĥ) IT Supervisor: Manage the functions of the IT Dept.ĥ) File Librarian: Store and protect programs and tapes from damage and unauthorized use.Ħ) Data Librarian: Has custody and maintains the entity's data and ensures that productions data is released only to authorized individuals when needed.ħ) Security Administrator: Responsible for the assignment of initial passwords and often the maintenance of those passwords.Ī) Database Administrator: Responsible for maintaining and supporting the database software and performing certain security functions. Non-Value-Added Activities: do not increase product value or service and are targeted for elimination.ĭirect Method: Most widely used Service departments only applied to production departments.
Value Chain: a series of activities in which customer usefulness is added to the product. Resource Cost Drivers: amount of resources that will be used by an activity.Īctivity Cost Drivers: amount of activity that a cost object will use, and it is used to assign the costs to the cost objects.Īctivity Centers: Cost pools an operation necessary to produce a product. Resource: an element that is used to perform (or applied to perform) an activity.Ĭost Drivers: Activity bases that are closely correlated with the incurrence of manufacturing overhead costs. Volume-based: Traditional costing systems use a single cost driver.Īctivity: any work performed inside a firm.