Which One of the Following Statements Concerning Measures of Productivity

question 106

Multiple Choice

Which one of the following statements concerning measures of productivity is FALSE?

• A) The number of insurance claims processed per week by employees in an insurance company is a valid measure of productivity.
• B) Productivity is measured as the ratio of outputs divided by inputs.
• C) Multifactor measures of productivity must convert the quantities being measured to a common unit of measure such as dollars.
• D) Measures of labour productivity are generally more informative than multifactor measures of productivity.

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Definitions:

Manufactured Product

A product that has been processed or constructed through industrial or manufacturing operations.

Direct Materials Cost

Direct materials cost represents the total cost of raw materials directly used in the production of a product, crucial for calculating the cost of goods sold.

Factory Overhead Cost

Indirect costs related to manufacturing that are not directly traceable to a product, including costs for maintenance, utilities, and indirect labor.

Managerial Accounting

The process of identifying, measuring, analyzing, and communicating financial information to managers for the pursuit of an organization's goals.