Marginal Factor Cost (MFC) Is

question 74

Multiple Choice

Marginal factor cost (MFC) is

• A)the additional cost incurred by employing an additional factor unit.
• B)the additional output generated by employing an additional factor unit.
• C)equal to factor price for a factor price taker.
• D)a and c
• E)b and c

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Definitions:

Net Realisable Value

The estimated selling price of an asset in the ordinary course of business minus any costs associated with its sale or disposal.

Fair Value

A market-based measurement that represents the price at which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.

Normative Theories

Theories that prescribe how the world should be or how ethical dilemmas should be resolved, based on values and principles.

Monitoring Costs

Expenses associated with the oversight and management of investments or other financial activities to ensure compliance and performance objectives.