The Difference Between the Cost of Production on a Piece

question 54

Multiple Choice

The difference between the cost of production on a piece of land less the cost of production on marginal land is called

• A)usury.
• B)profit.
• C)rent.
• D)interest.

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Definitions:

Property, Plant, and Equipment

Long-term assets vital to business operations and not easily converted into cash, encompassing real estate, factories, machinery, and more.

Buildings

Assets classified in accounting as long-term or fixed assets, representing structures owned by a company for business use.

Return On Assets

A profitability ratio that measures how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.

Asset Turnover

A ratio that measures the efficiency of a company's use of its assets in generating sales revenue.