Recognition Position

Team B

University of Phoenix

Accounting for Managerial Decision Making ACC//539

Facilitator: Kari Standley

October 8, 2009

Big Drive Auto
Business decsions are often influenced by monetary policy. That is to say unit pricing, day to day operations and opportunity costs hinge upon monetary policy and the economic behavior of a given poplulation-at-large. Accodrding to statistical data provided, the decision-making process of Big Drive Auto appears to have been heavily influenced by several variabes of monetary policy and consumer demad. The revenues of Big Drive Auto are generated from several sources. Recognizing that some business diversification can be beneficial, Big Drive not only depends on car sales for profits, the company also generates revenues from providing automotive service and supplies such as tires, motor oil and coolant. Additionally, Big Drive provides the aforementioned products and/or sevices in several states thereby exposing themselves to a larger audience (University of Phoenix, 2009).
Money Market
MonConnell & Brue (2004) describe the money market as where the supply and demand for money are combined. Business transactions as well as the degree of asset demands collectively determine the the total demand for money.   The gross domestic product (GDP) is directly related to transaction demand. Now, according to Turano (2009), “The four components of GDP (Y) [that] contribute to the aggregate demand for goods and services [are] Y= C + I + G + NX.” (p. 3) Conceptually, when the economy experiences a rise in overall price levels, the number of goods and services available will rise as well. Businesses want ot take advantage of the potential profit margin and therefore provide the consumer with more surplus. This effect is demonstrated in the year 2007. Big Drive had the second highest unit sales, 163,000, in nine years priced at the third highest price, in the same...