Scarcity of resources

Hello, I'm going to blog about the goal of organization as start for today.
Sample on Comparative study of  a profit and non profit organization is commonly describe below in the table.

Comparative Table

  Scarcity of resources
The price, exchange value or equivalent of its value , of a good or service usually reflects the resources which are combined to produce it. These resources, such as material,land, support services like marketing , administrative and  staff salary, also have a price and this is largely determined by demand and supply factors. For example, a normal pen are cheaper than quill pens because wood is in plentiful supply but quill pens are more expensive as there is a limited supply of raw materials required to produce them. Thus, scarce resources usually command a high price.
 
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Sometimes, there are competing ends for which resources could be used. For example, wood can be used for a variety of products ranging from furniture to tent pegs. If these ends are many and varied in importance and the means of achieving them are limited, there is an economic problem and someone has to decide which end will be satisfied through production.

The decision regarding how to use the wood will need to takeinto account people's wants. If the demand for furniture is enormous and the demand for tent pegs is minuscule, it is likely that furniture will be produced.

Generally, there are insufficient resources available to produce all the goods and services which people want. This relative scarcity of resources means that a choice has to be made.
When a choice arises, an alternative has to be given up. Thus, a producer might have to choose between using wood for furniture or tent pegs, because his resources are limited. Similarly, a consumer may have a limited amount of income and thus has to choose between two alternative products; for example a painting or a new garden mower, both valued at RM400.

The sacrifice, when a choice is made, is termed the opportunity cost because it is the alternative foregone. Usually, the opportunity cost has a monetary value. However, it could be a choice over the use of time, for example, write a chapter of a book or play 36 holes of golf!

Choice arises because of relative scarcity.

Opportunity cost is a measurement of the foregone alternative.

My First Note

I've always wanted to be a Charted Management Accountant since year 2000.time passed  merely as dream.
Here I'm at the junction of early signal of midlife career crisis with a burning desire to upgrade my skill for better career prospect. I hope the journey as management accountant shine my life and people surround me.

May God bless me with ability to unleash my power within to greater unlimited personal excellence.