Search results
Results from the WOW.Com Content Network
Capital cost. Capital costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or in the rendering of services. In other words, it is the total cost needed to bring a project to a commercially operable status. Whether a particular cost is capital or not depend on ...
Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production process, i.e. output per unit of input, typically over a specific period of time. [ 1 ]
Consequently, labour power may be hired not "because it creates more value than it costs to buy", but simply because it conserves the value of a capital asset which, if this labour did not occur, would decline in value by an even greater amount than the labour cost involved in maintaining its value; or because it is a necessary expense which ...
Money portal. v. t. e. In economics, the wage share or laborshare is the part of national income, or the income of a particular economic sector, allocated to wages (labor). It is related to the capital or profit share, the part of income going to capital, [ 1 ] which is also known as the K – Y ratio. [ 2 ] The labor share is a key indicator ...
Fixed costs are costs that relate to the fixed input, capital, or rK, where r is the rental cost of capital and K is the quantity of capital. Variable costs (VC) are the costs of the variable input, labor, or wL, where w is the wage rate and L is the amount of labor employed. Thus, VC = wL. Marginal cost (MC) is the change in total cost per ...
Cost of capital. In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or from an investor's point of view is "the required rate of return on a portfolio company's existing securities". [ 1 ] It is used to evaluate new projects of a company.
In such industries, labor costs are more of a concern than capital costs. Labor intensity is measured by its proportion [clarification needed] to the amount of capital to produce goods or services. The higher the labor cost, the more labor intense is the business. Labor cost can vary because businesses can add or subtract workers based on ...
In economics, capital goodsor capitalare "those durable produced goods that are in turn used as productive inputsfor further production" of goods and services.[1] A typical example is the machinery used in a factory. At the macroeconomiclevel, "the nation's capital stockincludes buildings, equipment, software, and inventories during a given year."