Total Factor Productivity

question 118

Multiple Choice

Total factor productivity:

• A) is a ratio of the value of output to the value of all key inputs.
• B) is the same thing as the production volume variance.
• C) focuses on an individual input.
• D) includes materials and labor but not overhead.

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Definitions:

Ending Work in Process Inventory

The value of goods in production but not yet completed by the end of an accounting period.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods, including raw material, labor, and overhead costs, in a specific period.

Direct Labor Cost

The total cost of employing workers who are directly involved in the manufacture of goods or the provision of services.

Direct Materials

Primary materials directly linked to the production of a good and are categorized as variable expenses.