The Measure of the Efficiency of a Specific Unit of an Organization

question 77

Multiple Choice

The measure of the efficiency of a specific unit of an organization is called its:

• A) efficiency ratio.
• B) partial productivity.
• C) total factor productivity.
• D) labor productivity.
• E) sales productivity.

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Definitions:

Processing Department

A section or unit within a manufacturing facility where a specific type of processing or operation is carried out.

Work in Process

Inventory items that are partially completed in manufacturing or production but not yet ready for sale.

Units Transferred Out

The term used in cost accounting to refer to products or goods that have been completed and moved out of the work-in-process accounts into finished goods inventory.

Total Cost

The aggregate amount of expenses incurred by a company to produce goods or services, including fixed, variable, and semi-variable costs.