The Degree of a Factor's Specificity Is Directly Related to

question 9

Multiple Choice

The degree of a factor's specificity is directly related to

• A) the amount of time required to redeploy the factor to a different industry.
• B) the cost of the factor as a proportion of the long-run total cost of production.
• C) the mobility of the factor, with more mobile factors having more specificity.
• D) technology differences between two countries, with a more advanced technology resulting in more factor specificity.
• E) factor quality, with higher quality factors having a higher level of specificity.

Identify different incentives for prompt payment by customers.

Calculate the effects of sales discounts on cash receipts.

Understand the normal credit balance of various accounts.

Comprehend the role of freight in in determining the cost of goods available for sale.

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Definitions:

Interest Rate

The percent of principal charged by the lender for the use of its money.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in assessing investment opportunities.

Compounded Annually

Describes how interest on an investment or loan is calculated once a year, with each year's interest based on the principal plus any previously earned interest.

Return

The gain or loss on an investment over a specified period, expressed as a percentage increase over the original investment cost.