Total Factor Productivity Will Increase If ________

question 164

Multiple Choice

Total factor productivity will increase if ________.

• A) technical productivity occurs
• B) the company uses more total inputs per output
• C) the company incurs fewer costs per input
• D) current technology becomes obsolete

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Definitions:

Traditional Format

A conventional method of financial reporting where costs are classified by function (e.g., cost of goods sold, operating expenses) rather than by behavior.

Gross Margin

The difference between sales revenue and the cost of goods sold, showing the profitability of a company's core activities.

Net Operating Income

represents the profit a company makes from its normal business operations, excluding non-operating income and expenses.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs such as maintenance, supplies, and utilities.