Tracking Productivity Measures Over Time Enables Managers to Judge Organizational

question 6

True/False

Tracking productivity measures over time enables managers to judge organizational performance and to decide where improvements are needed.

---

Definitions:

Production Constraint

A limitation or bottleneck in the production process that restricts output, efficiency, or the utilization of resources.

Profits

The financial gain achieved when the revenues from business operations exceed the expenses, costs, and taxes involved in sustaining the operation.

Opportunity Costs

The value of the best alternative that is foregone when a different option is chosen.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.