|Factor of Production
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: accounting, financial, tax advisor, inventory, finance, stock trading, payroll, financial advisor,
Also see related: credit, property, home, mortgage, homes, real estate, home insurance, insurance, homebuying,
Definition of Factor of Production
Factor of Production
A resource used to produce a good or service. The main macroeconomic factors of production are capital and labor.
the present value of a finite stream of cash flows for every beginning $1 of cash flow.
a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity.
The pool factor implied by the scheduled amortization assuming no prepayemts.
Present value of $1 paid for each of t periods.
Rules set by the Chicago Board of Trade for determining the invoice price of each
Present value of $1 received at a stated future date.
A financial institution that buys a firm's accounts receivables and collects the debt.
A statistical procedure that seeks to explain a certain phenomenon, such as the return on a
A way of decomposing the factors that influence a security's rate of return into common and
A well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of
Sale of a firm's accounts receivable to a financial institution known as a factor.
factoring arrangement that provides collection and insurance of accounts receivable.
A version of the capital asset pricing model derived by Merton that includes extramarket
A linear approximation of a factor, T*, that enables one to operationalize the
factoring arrangement that provides collection, insurance, and finance for accounts receivable.
A special case of the arbitrage pricing theory that is derived from the one-factor model by
The outstanding principal balance divided by the original principal balance with the result
Present value factor
factor used to calculate an estimate of the present value of an amount to be received in
Production payment financing
A method of nonrecourse asset-based financing in which a specified
An agreement by the loan purchaser to allow the monthly loan quota to be
The pool factor as reported by the bond buyer for a given amortization period.
Single factor model
A model of security returns that acknowledges only one common factor.
Black's zero-beta version of the capital asset pricing model.
UNITS OF PRODUCTION
A depreciation method that relates a machineâ€™s depreciation to the number of units it makes each
The production resource that, as a result of scarce resources, limits the production of goods
A general term referring to period costs, such as selling, administration and financial expenses.
A general term referring to indirect costs.
cost of production report
a process costing document that
critical success factors (CSF)
any item (such as quality, customer
economic production run (EPR)
an estimate of the number
equivalent units of production (EUP)
an approximation of the number of whole units of output that could have been
The sale of accounts receivable to a third party, with the third party bearing
All the costs incurred during the manufacturing process, minus the
Production yield variance
The difference between the actual and budgeted proportions
Present value of an annuity of $1 per period.
Present value of a $1 future payment.
Aggregate Production Function
An equation determining aggregate output as a function of aggregate inputs such as labor and capital.
The discounting, or sale at a discount, of receivables on a nonrecourse, notification
The technique of stripping all non-value-added activities from
Process flow production
A production configuration in which products are continually
An anticipated loss percentage included in the bill of material and
The expected loss of some proportion of an item during the
An agent who buys and sells goods on behalf of others for a commission.
Type of financial service whereby a firm sells or transfers title to its accounts receivable to a factoring company, which then acts as principal, not as agent.
Numbers found in compound interest and annuity tables. Usually called the FVIF or PVIF.
This is a key factor in the profit model of a business. Product
an increase in units or volume caused by the addition
flexible manufacturing system (FMS)
a production system in which a single factory manufactures numerous variations
any factory or production cost that is indirect to
Income payments to factors of production are spent to buy output. The receipts from these sales are used to pay factors of production, creating a circular flow of income.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.