Inputs are defined as things that are usually susceptible to generating services and reducing people's needs, that means that they are all raw materials that can produce new elements and are used in the production of goods and services.
In economics these can be considered as intermediate goods as they are needed to create other goods or semi-finished products that will be for final consumption.
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The requirements that are fundamental within the inputs, are goods that are used for the execution of other goods, but that must be used with others that are well prepared, in addition they are generally destined that are destined for the production of others that are not consumed directly.
In this article you will find:
What are the inputs used for?
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These are used in a common way to define everything that serves people for their development and quality of life. Therefore, this is about those goods that can be found in nature and also in society.
This term is used to refer to all those implements that serve to determine an end and that are are denominated as raw material, especially if they are useful to carry out various activities and procedures.
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The resource of certain inputs is directly related to the productive activities that have the purpose of carrying out other goods of greater value. complexity and that imply a greater elaboration procedure, which are no longer considered as such due to the loss of their characteristics essential.
These are usually used as raw material in the production of other goods. However, this word serves to be used in economic terms that apply in a matrix and are also used to define the relationship between production and the increase in demand.
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Input characteristics
Among the most relevant characteristics of this term are:
- They are characterized by being finished products that are used to make other elements.
- They are elements that are used frequently within the production area and are mostly constantly replaced.
- The tools of certain machines must be changed because they have worn out and those that must be bought regularly are replaced, since as they are used they run out.
Types of inputs
These can be classified into two types according to their nature. Each one will be explained below so that you can understand what they consist of:
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Workforce
It is about the work carried out by a person during the transformation of a certain product. Similarly, labor can be divided into two subtypes:
- Direct labor: It is the work that a person executes.
- Indirect labor: Refers to the work that a person does by means of a tool or machine.
Capital
It is the resource created by people that they include in the production procedure. This in turn is classified into:
- Raw material: These are products that are in their natural state without undergoing any type of transformation.
- Industrial material: They are the half-finished products that belong to the production process.
- Installation: It is the place where the productive activity takes place.
- Services: They are those offered by third parties to benefit part of the company's production process.
Difference between inputs and raw materials
These should not be confused with raw materials, since raw materials are those elements that are mainly taken from nature and that make up the basis of certain products, while inputs are the elements that are already made to help develop a product or service final.
In this sense, the inputs can be made of raw material, unlike the raw material that is not made from any input.
What is the input-output matrix?
In business production, the input - product matrix creates a chart of accounts that has a double entry where the relations of the different factors of production, in such a way that it generates the result of a product during the variation of one of the factors.
This in turn tries to create a correlation of adequate supplies to establish a point of equilibrium that generates a maximum profit for the organization, within the profitability of all resources.
It can be said that all input is what is available for the use and development of human life, from what is found in nature, to what is produced by people. In general, these inputs lose their characteristics and properties so that they are transformed and become part of a final product.
