Why Is the Measurement of Productivity More Controversial Today Than

question 15

Multiple Choice

Why is the measurement of productivity more controversial today than it was in the days when the rational goal model was initially developed?

• A)Because employees today are less likely to stay with an employer for many years
• B)Because we already know as much about productivity as we need to know, so spending time and money on additional measurement is wasteful
• C)Because it is more important to measure an organizations carbon footprint than its productivity
• D)Because it is more complex to measure the productivity of intellectual capital than other forms of capital such as natural resources
• E)Because productivity is no longer important to organizational effectiveness

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Definitions:

Salespersons' Commissions

Payments made to sales staff that are typically based on a percentage of the sales they generate.

Product Cost

The total amount spent to produce a product, including raw materials, labor, and overhead costs directly tied to the production process.

Period Cost

Period cost refers to any cost that is not directly tied to the production of goods and is expensed in the period it is incurred.

Frosting

A sweet, creamy icing used for coating or decorating cakes and pastries.