top 10 most profitable companies in the world In terms of the purchase of intermediate products in the market, because a lot of manufacturers are generally buy goods from a handful of suppliers, it is beneficial to this a few suppliers to achieve economies of scale and reduce the cost of production. Moreover, market competition pressure between intermediate product suppliers forces suppliers to reduce production costs. In addition, when a few suppliers in the face of many intermediate products of demanders, these a few suppliers can be avoided due to the limited market demand caused by unstable, the loss that may lead to maintain a stable overall sales. Keynes argued that savings and investment were two interdependent variables, not two independent variables. Two extremes can be envisaged. In an extreme case, each production is done by a single individual, such as a person making a car. In this way, the person is going to trade with a lot of intermediate goods suppliers, and also to trade with the demanders of their products. In this case, all transactions are conducted through the market in many individuals. In another extreme cases, all the production in the economy in a large enterprise, such as the complete car was produced in the enterprise interior, don't need to make any intermediate products trading market. Therefore, the same transaction can be conducted either through the organizational form of the market or through the organizational form of the enterprise. Companies exist, or companies and markets coexist, because some transactions cost less in the enterprise, while others cost less in the market. 4. The determination of accounting earnings shall follow the principle of revenue confirmation. The current accounting practice and the law's view of earnings are still: only after the relevant conditions of the asset value increase are met, the benefits can be generated. Income and appreciation must be measured objectively, determined or unalterable, and must be verified through some business or accounting matters. In other words, the determination of accounting income should be based on the following two principles: the realization principle of income determination and the prudent principle of income determination. According to the realization principle of revenue recognition, the enterprise income should be divided into operating income and profit and loss. The determination of operating earnings must happen in selling goods or services and other key issues, and the profit and loss refers to the production of the assets held realized gains and losses, unrealized gains and losses caused by price change is not confirmed. According to the principle of steady earnings determine when a has a variety of economic business accounting methods for when the choice, should choose the most don't overestimate the method of income, it should not be overestimated revenues and should not be underestimated cost two aspects. The API data also showed that us crude imports last week fell by 138,000 barrels/solstice7100,000 BPD.