factor cost

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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.
References in periodicals archive ?
The third elements factor cost subsystem has two indicators, namely "average wage (X7) and fixed asset investment in the proportion of loans to finance (X8)".
As for profits, interest, depreciation, and land rent, they are added or adjusted to eliminate further divergences between established prices and factor costs.
In sum, what we are suggesting here is that the size of the implicit grants economy can be measured by the gross divergences between market prices and adjusted factor costs.
It must be underscored that cost advantage grows as much out of efficient-to-manufacture product designs and leading process technology as it does out of factor costs oz" even economies of scale.
The factor costs associated with input of the capital factor consist of two components.
The same price indexes (producer and consumer price indexes) will be used, and unit factor costs will be estimated from ratios of factor input expenditures to corresponding real output estimates.
In doing so, they take an Integrated view of costs: factor costs, scale advantages, productivity, and also - most importantly - the potential savings in design-to-cost.
We say that we want health care coverage for everyone and that we want the best health care in the world, but we have not been willing to factor costs or rationing into any of the equations.
Equation 3 sums the value added by the sectors, to give the gross domestic product at factor costs.
Global competitors, including new players who establish manufacturing operations in emerging Asian economies and benefit from the lower factor costs of production in these regions, are anticipated to have a significant impact on the competitive landscape of the this industry in years to come.
During this time, a significant portion of the savings will be reinvested in initiatives to reach and keep more customers, and offset rising factor costs.
Industrial structure of GDP at factor cost series on the SIC 1980 basis.