Which of the Following Would NOT Be Considered as an Input

question 53

Multiple Choice

Which of the following would NOT be considered as an input into a capital budgeting decision?

• A)scrap value of equipment sold at the end of a project
• B)labour savings as a result of mechanization of a process
• C)cost outlays many years after the project has started
• D)amortization on a straight line basis

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Definitions:

Long-Run Cost Function

A concept that describes how the total production costs of a firm change based on output levels, considering all inputs as variable in the long term.

Output Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a certain period of time.

Price

The financial expenditure needed to acquire a good or service.

Production Function

A mathematical representation of the relationship between inputs (like labor and capital) and the maximum output possible.