Which of the Following Is a Correct Way to Measure

question 156

Multiple Choice

Which of the following is a correct way to measure productivity?

• A)divide the number of hours worked by output
• B)divide output by the number of hours worked
• C)compute output growth
• D)divide the change in output by the change in number of hours worked

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Definitions:

Lost Sales

Potential sales that were not realized due to stock shortages, inadequate service, or other operational issues.

Retail Method

An accounting method used to estimate inventory value by applying a cost-to-retail price ratio, based on the beginning inventory plus purchases, less the sales at retail.

Inventory Costing

The method used to value and account for inventory, including costs of purchase, production, and conversion.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated after considering the cost of goods sold and any new purchases.