Which One of the Following Statements Concerning Measures of Productivity

question 106

Multiple Choice

Which one of the following statements concerning measures of productivity is FALSE?

• A) The number of insurance claims processed per week by employees in an insurance company is a valid measure of productivity.
• B) Productivity is measured as the ratio of outputs divided by inputs.
• C) Multifactor measures of productivity must convert the quantities being measured to a common unit of measure such as dollars.
• D) Measures of labour productivity are generally more informative than multifactor measures of productivity.

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Definitions:

Labor Cost

Refers to the total expense incurred by employers for the compensation of their workforce, including wages, benefits, and taxes.

Materials Cost

The total expense to an entity for all materials used in the production of a product or service.

Break-even Chart

A graphical representation used in financial analysis to show the point at which total costs and total revenue are exactly equal; thus, there is no loss or gain.

Break-even Point

The financial state where total costs and total revenues are equal, meaning there is no net loss or gain, and one has "broken even."