Marginal Factor Cost Is The

question 97

Multiple Choice

Marginal factor cost is the:

• A) amount a factor adds to a firm's total revenue per period.
• B) change in the quantity of the factor divided by the change in total cost.
• C) change in total cost divided by the change in the quantity of the factor.
• D) same as marginal fixed cost.

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Definitions:

Net Profit Margin

A financial metric that measures how much of every dollar earned in revenue is translated into profit after all expenses are deducted.

After-tax Profit

The amount of net income left over after all taxes have been deducted from total revenues.

Inventory Turnover

A measure of how many times a company’s inventory is sold and replaced over a period, indicating efficiency in inventory management.

Cash-to-cash Cycle

The time duration it takes for a company to convert its investments in inventory and other resources into cash flows from sales.