The Marginal Productivity Principle Has Relevance Only in a Capitalist

question 104

True/False

The marginal productivity principle has relevance only in a capitalist economy, and not in a socialist system.

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Definitions:

Realisation Rate

The percentage of billable time or work that is actually charged or billed to clients, often used in professional services to evaluate profitability.

Profit Margin

A financial metric expressing the percentage of revenue that remains as profit after all expenses have been accounted for.

Hybrid Costing System

A costing methodology that combines elements of both job costing and process costing, used in manufacturing of goods with some common and some unique characteristics.

Professional Service Firms

Businesses that offer specialized services requiring professional skills, such as law, consulting, and accounting firms.