Suppose That a Plant Has a Daily Productivity of 0

question 26

Multiple Choice

Suppose that a plant has a daily productivity of 0.85 parts per employee? What can we conclude?

• A) the plant must be very labor-intensive
• B) the plant is not earning profits
• C) the plant must be highly automated
• D) the plant should lay off workers
• E) nothing

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Definitions:

Productivity

The measure of the efficiency of production, often evaluated as the ratio of outputs to inputs in a manufacturing or service process.

Double-Declining-Balance

An accelerated method of depreciation calculating depreciation at twice the rate of the straight-line depreciation method.

Salvage Value

The assessed worth of an asset at the expiration of its life of usefulness.

Depreciation Expense

The organized spreading of a tangible asset's expense over the duration of its utility.