The Total Output from a Production System in One Day

question 2

Multiple Choice

The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours.Using the appropriate productivity measure, which of the following numbers represents 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:

Accounts Payable

Liabilities representing amounts owed by a company to suppliers or creditors for goods and services received.

Prepaid Insurance

An asset account on the balance sheet representing insurance premiums that have been paid in advance and have not yet expired.

Supplies

Materials and items that are used in the day-to-day operations of a business, not directly tied to a finished product.

Liability

A financial obligation or debt that an entity owes to another party, which is expected to be paid in the future.