Alfred Marshall's Concept of "Transfer Earnings" Denotes

question 44

Multiple Choice

Alfred Marshall's concept of "transfer earnings" denotes

• A)the value of the factor to its user.
• B)a return to a particular factor which must be the same for all uses of that factor.
• C)the amount a factor earns over and above what is necessary to keep the factor from transferring to an alternative use.
• D)the amount that a factor must earn to keep it from transferring to another use.
• E)the amount the factor earns every time it transfers between locations.

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Definitions:

Cost Of Goods Available For Sale

The total cost of all merchandise or products that a company has in stock and is ready to be sold, including both new and existing inventory.

Schedule Of Cost Of Goods Sold

A detailed statement showing the direct costs, indirect costs, and manufacturing overheads incurred to produce goods sold in a period.

Finished Goods Inventory

This inventory includes products that have completed the manufacturing process but have not yet been sold to customers.

Cost Of Goods Manufactured

The total manufacturing costs of goods that are completed and ready for sale within a specific accounting period.