Which of the Following Is NOT a Factor of Production

question 458

Multiple Choice

Which of the following is NOT a factor of production?

• A) the effort of farmers raising cattle.
• B) the management skill of a small business owner.
• C) the water used to cool a nuclear power plant.
• D) the wages paid to workers.

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Definitions:

Cost

The amount of money or resources expended to acquire an asset, achieve an objective, or operate a service.

LIFO Inventory Method

An inventory costing method where the last items purchased or produced are considered the first items sold; stands for Last-In, First-Out.

Oldest Inventory Purchase Costs

Refers to the costs associated with the earliest batch of products bought by a business, crucial for inventory valuation methods like FIFO (First-In, First-Out).

Cost of Goods Sold

This accounts for the direct costs attributable to the production of the goods sold in a company, including material and labor costs.