Scottso Enterprises Has Provided the Following Information for Last Year

question 64

Multiple Choice

Scottso Enterprises has provided the following information for last year: The total factor productivity measure is:

• A)1.003
• B)1.134
• C)0.882
• D)0.362

---

Definitions:

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, remaining constant even when business activity levels change.

Rural Sales Territory

A geographic area located in the countryside where a company's sales representatives focus their marketing and sales efforts.

Net Operating Income

The profit generated from a company's everyday business operations, excluding taxes and interest.

Absorption Costing

A strategy in accounting where the cost of a product encompasses all the production expenses: direct materials, direct labor, and manufacturing overheads, regardless of them being fixed or variable.