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island (J2, J4)<br />A location of jobs or employers such that at a point in time firms cannot move but workers can. On each island, the competitive labour market there sets wages equal to the MARGINAL PRODUCT OF LABOUR On that island; as productivity differs from island to island, so do wage offers. Workers engage in job search to find islands with better wages.<br /><em>See also:</em> job search <br /><em>Reference</em><br />Lucas, R.E., Jr and Prescott, E.C. (1974)<br />'Equilibrium search and unemployment', Journal of Economic Theory 7: 188-209.
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management accounting (M4)<br />The financial appraisal of the past, present and future activities of a firm. It includes CASH BUDGETrNG (a prediction of future cash inflows and outflows which indicates what further finance is required), CAPITAL BUDGETING (appraisal of investment plans) and TRANSFER PRICrNG. Management accountants are also concerned to monitor the design of present accounting systems to prevent fraud and to meet the growing needs of management for information. It developed from cost accounting in response to the increasing complexity of large firms.<br /><em>See also:</em> accounting; financial accounting
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