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Joe makes revenue by selling pizza to his customers. Joe's Pizzeria has employees whose task is to sell pizzas, as well as to produce pizzas from raw materials such as dough, tomatoes, cheese, pepperoni and other toppings. There are also other things necessary to produce pizza, such as the oven where the pizza is baked, electricity consumed to heat the oven, various kitchen equipment and many other things. Joe is interested in tracking information about some of them; in REA, the things that Joe is interested in planning, monitoring and controlling are called economic resources. The main trading processes of Joe's Pizzeria, are selling pizza to the customers (the Sales process), purchasing raw materials from the vendors (the Purchase process), and purchasing labor from the employees (the Labor Acquisition process).

Based on the above scenario, assume Joe's Pizzeria plans to construct an REA model for the sales process. Identify the economic resources, agents, economic events and at least one cardinality relationship that would be included in the REA diagram for the sales process?

Microeconomics, Economics

  • Category:- Microeconomics
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