Ephraim Is Analyzing the Productivity of His Section

question 193

Multiple Choice

Ephraim is analyzing the productivity of his section.Last week his crew worked 4,000 hours and produced 600,000 units of product.The average hourly wage was $7 per hour,and 200 hours were lost to absenteeism.The sale price for the items produced is $2 per unit.What is the labor productivity index?

• A) 21.43
• B) 42.86
• C) 150.00
• D) 157.89
• E) 300.00

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Definitions:

Petty Cash Fund

A small amount of cash on hand used for paying expenses too small to merit writing a check.

Bank Checking Account

A bank account that allows for easy access to funds through checks, debit cards, and electronic transfers, used for managing daily transactions.

Internal Controls

Procedures and mechanisms established by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Safeguard Assets

Measures and procedures implemented by a company to protect its assets from theft, damage, or misuse.