A Productivity Goal Could Be Stated in Terms of "Cost

question 26

True/False

A productivity goal could be stated in terms of "cost for a unit of production," "units produced per employee," or "resource cost per employee."

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Definitions:

Cost Ratio

A measure used to evaluate the efficiency and profitability of a company, calculated as the cost of goods sold divided by net sales.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated for cost of goods sold and financial reporting purposes.

Retail Method

An accounting method used to estimate inventory value, calculated by adding the cost of goods purchased to the cost of the opening inventory and then subtracting the cost of goods sold.

Estimated Ending Inventory

A projection of the value of goods a company has available for sale at the end of an accounting period, based on calculations or formulas.