factor cost

(redirected from Adjustment to Factor Cost)
Also found in: Dictionary, Wikipedia.

Factor Cost

The market value of a good or service at the retail level. The factor cost is equal to the price the customer pays, less any taxes (such as a VAT or a sales tax), and plus any subsidies the customer receives from the government.

factor cost

the value of goods and services produced, measured in terms of the cost of the FACTOR INPUT (materials, labour, etc.) used to produce them, that is, excluding any indirect taxes levied on products and any subsidies offered on products. For example, a product costing £10 to produce (including profit) and with a £1 indirect tax levied on it would have a market price of £11 and a factor cost of £10. See FACTORS OF PRODUCTION.