Which One of the Following Statements Concerning Measures of Productivity

question 45

Multiple Choice

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

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

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Definitions:

Common Stock Market

A marketplace for the buying and selling of equity securities or shares representing ownership in publicly traded companies.

Dividends

Payments made by a corporation to its shareholders, usually in the form of cash or additional shares, from the company's profits.

Stockholders' Equity

The residual interest or value that shareholders have in a company after all liabilities are subtracted from the assets.

Financial Statement

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheets, income statements, and statements of cash flows.