What Is Productivity, and What Are the Differences Between Partial

question 140

Essay

What is productivity, and what are the differences between partial productivity measures and total factor productivity?

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Definitions:

Raw Materials Inventory

The stock of unprocessed materials that are used in the manufacturing process to produce finished goods.

Cost of Goods Sold

The total direct costs attributable to the production of the goods sold by a company.

Raw Materials

Basic materials that are used to produce goods, finished products, or intermediate materials which are feedstock for future finished products.

Raw Materials Inventory

Stock of materials that are to be used in the production of goods, not yet processed or incorporated into finished products.