The Total Output from a Production System in One Day

question 9

Multiple Choice

The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours.Using the appropriate productivity measure, what is the resulting productivity ratio?

• A)1.000
• B)1.428
• C)0.700
• D)0.411
• E)None of these

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Definitions:

Operating Cash Inflow

Cash generated from a company's primary business activities, excluding financing and investing flows.

After-Tax Discount Rate

The discount rate used in capital budgeting that accounts for taxes, providing a clearer picture of an investment's after-tax profitability.

Straight-Line Depreciation

A method for apportioning the cost of a tangible asset over its viable life in steady yearly figures.

Operating Cash Inflow

Funds that are generated from a company's normal business operations, reflecting the cash inflows from selling goods and services.