The Factor-Rating Method Can Consider Both Tangible and Intangible Costs

question 36

True/False

The factor-rating method can consider both tangible and intangible costs.

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Definitions:

Economist

A professional who studies, develops, and applies theories and principles of economics to understand how economies function and to inform policy.

Fixed Supply

A condition where the quantity of a good or resource available does not change, regardless of price.

Economic Rent

Payment to a factor of production in excess of what is needed to keep that factor in its current use.

Production Cost

The total expense of producing a good or service, including labor, materials, and overhead costs.