A Useful Way to Measure the Productivity of a Workforce

question 38

True/False

A useful way to measure the productivity of a workforce is to determine the total cost of people against the annual sales of the organization.

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Definitions:

Expense Account

An account that records the costs incurred by a business in the process of earning revenue, part of the company's income statement.

Adjusting Entry

A record added in the books at the closing of an accounting cycle to note any unrecorded earnings or expenditures during that time.

Rent Revenue

Income received from leasing out properties or spaces to tenants.

Liability-Revenue Relationship

The association between a company's liabilities and its ability to generate income, impacting financial performance.