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Factor cost or national income by type of income is a measure of national income or output based on the cost of factors of production, instead of market prices. This allows the effect of any subsidy or indirect tax to be removed from the final measure.[1]
The concept of factor cost is focusing on the cost incurred on the factor of production. It can be defined as the actual cost incurred on goods and services produced by industries and firms is known as factor costs. Factor costs include all the costs of the factors of production to produce a given product in an economy. It includes the costs of land, labor, capital and raw material, transportation etc. They are used to produce a given quantity of output in an economy. The factor cost does not include the profits made by the producing firms or industries or the tax which they incur on producing those goods and services. We can simply categorize it as the cost of producing a product from unfinished good to a semi finished good or a finished good up to the desired output level.
^Bannock, Graham. (1998). Dictionary of economics. Baxter, R. E. (Ron Eric), Davis, Evan, 1962-, Bannock, Graham. New York: John Wiley & Sons. ISBN 0-471-29599-X. OCLC 39856046.
Factorcost or national income by type of income is a measure of national income or output based on the cost of factors of production, instead of market...
marginal factorcost (MFC) is the increment to total costs paid for a factor of production resulting from a one-unit increase in the amount of the factor employed...
added in the various economic activities is known as "GDP at factorcost". GDP at factorcost plus indirect taxes fewer subsidies on products = "GDP at producer...
The Lang Factor is an estimated ratio of the total cost of creating a process within a plant, to the cost of all major technical components. It is widely...
economics, the marginal cost is the change in the total cost that arises when the quantity produced is increased, i.e. the cost of producing additional...
than a whole economy. Restated, GDP at factorcost = gross value added (GVA) at factorcost. GDP at factorcost = value of the final goods and services...
In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered...
(NNI adjusted for natural resource depletion – also called as NNI at factorcost). All are specially concerned with counting the total amount of goods...
generating electricity in real time to meet demand.[citation needed] A costfactor unique to storage are losses that occur due to inherent inefficiencies...
physical resources in defining its factors of production and discuss the distribution of cost and value among these factors. Adam Smith and David Ricardo referred...
wages List of sovereign states in Europe by net average wage Marginal factorcost Overtime Political science: Labour power Proletarian Working class Wage...
charge a higher cost to industrial or commercial customers where there is a low power factor. Power-factor correction increases the power factor of a load,...
output cost per unit of energy ($/MWh) already account for the capacity factor, while formulas that output cost per unit of power ($/MW) do not. Cost of capital...
sunk costs. Total cost in economics includes the total opportunity cost (benefits received from the next-best alternative) of each factor of production as...
categories: direct materials cost, direct labor cost and manufacturing overhead. It is a factor in total delivery cost. Direct materials are the raw...
Q): A C = T C Q . {\displaystyle AC={\frac {TC}{Q}}.} Average cost is an important factor in determining how businesses will choose to price their products...
costs are relatively small components of the total cost. The long service life and high capacity factor of nuclear power plants allow sufficient funds for...
the total cost needed to bring a project to a commercially operable status. Whether a particular cost is capital or not depend on many factors such as accounting...
cost, also called an imputed cost, implied cost, or notional cost, is the opportunity cost equal to what a firm must give up in order to use a factor...
In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to...
theoretically replaceable at an insurable cost). Personnel must be both key and irreplaceable to contribute to the bus factor; losing a replaceable or non-key...
Executives: A Practical Guide for Managers, p. 32. Factors Affecting Cost of Capital Factors Affecting the Cost of Capital Lambert, Richard; Leuz, Christian;...
In economics and related disciplines, a transaction cost is a cost in making any economic trade when participating in a market. The idea that transactions...
The capital cost tax factor (CCTF) is a calculated value summarising the benefit in future tax savings due to Capital Cost Allowance (CCA) in Canada. CCTF...
between cost per unit of output and the level of output, ceteris paribus. A perfectly competitive and productively efficient firm organizes its factors of...
need to be hired for the production to increase. For any factory, the fix cost should be all the money paid on capitals and land. Such fixed costs as buying...
variable cost is influenced by many factors, such as fixed cost, duration of project, uncertainty and discount rate. An analytical formula of variable cost as...
mineral raw materials Downcycling List of building materials Marginal factorcost Material passport Materials science Nature Christophe Degryse, L'économie...
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