CA Foundation · Business Economics · Nature and Scope of Business Economics
Which of the following is NOT a typical area within the scope of Business Economics as studied for decision-making by a firm?
Preparing journal entries and a trial balance is not part of the scope of Business Economics because it is an accounting task. Demand forecasting, cost and production analysis, and profit management with capital budgeting are all standard areas of Business Economics.
- ADemand analysis and forecasting
- BCost and production analysis
- CProfit management and capital budgeting
- DPreparing the firm's journal entries and trial balanceCorrect
Explanation
Demand forecasting, cost and production analysis, and profit and capital management are core areas of Business Economics. Preparing journal entries and a trial balance is a bookkeeping task belonging to accounting, not an economic decision-making area.
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