Which of the Following Statements About Productivity Is FALSE

question 46

Multiple Choice

Which of the following statements about productivity is FALSE?

• A) Productivity is a measure of outputs divided by inputs.
• B) The fewer inputs needed to produce a given output, the more productive the organization.
• C) Inputs and outputs are difficult to measure.
• D) Productivity measures can be compared over time without making adjustments for inflation.

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Definitions:

Manufacturing Overhead

Indirect costs associated with manufacturing, including utilities, depreciation, and salaries of non-direct labor, that are not directly traceable to specific units of product.

Units Produced

The total number of complete products that a manufacturing facility has finished producing during a specified period.

Period Costs

Expenses that are incurred on a regular basis and are not directly tied to the production process, such as selling, general, and administrative expenses.

Financial Reporting

The process of disclosing financial information and statements to management, investors, and regulators to reflect a company's financial performance and position.