Productivity Can Be Increased by

question 95

Multiple Choice

Productivity can be increased by

• A) increasing outputs.
• B) decreasing labour input.
• C) decreasing energy input.
• D) All of the above.

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Definitions:

Operating Leverage

A financial concept that measures the proportion of fixed costs in a company's cost structure, indicating its sensitivity to changes in sales volume.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Net Operating Income

A measure of the profitability of a business's core operational activities, excluding any income or expenses not directly related to its main operations.

Sales Volumes

The quantity of products or services sold by a company within a specific period.