Physical Resources Essay

5536 Words Feb 28th, 2014 23 Pages
CHAPTER I

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale

In every business, there is a corresponding supply of resources in order to support its operation. Resources are the total means available to a company for increasing production or profit. These factors contribute to the total framework of an entity. Sometimes, these cannot be controlled by the entity. Without these resources, an entity cannot operate business. Utilization is one of the factors to be considered in determining the successful operation of a business. A firm’s resources should be utilized cost-efficiently to provide a product that is affordable to pay or products that is worthy to be paid. Being efficient is producing desired effects without
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In this study, the researchers would like to determine if the selected pharmacies in the Tagbilaran City are cost efficient in utilizing their resources considering the manner of how the pharmacies manage these resources.

Theoretical Background

A firm, big or small depending on the kind of business, uses resources of various kinds: manufacturing resources, storage resources, logistics resources, human resources, and financial resources.1 Resources are the factors of production or the inputs which are use to produce an output i.e. goods and services. A business is nothing without its resources. That is why the business either in the product selling or service industry must have adequate resources. Resources can be wasted if decisions are not made in a timely fashion or if the wrong decision is made. Often waste occurs because inappropriate methods are used. Organizations can protect against waste if they institute practices designed to protect against it. Proper administrative procedures and practices help to reduce waste (Bernadin, 2007). Two of these major resources are financial and inventories. Financial resources are funds, sources, and the benefits that may accrue to the organization itself and to the community arising from efficient and effective utilization of the said funds (Mejorada, 2006). It is the

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