In Calculating the Profit Linkage, PQ Represents the Productivity-Neutral Quantity

question 52

Multiple Choice

In calculating the profit linkage, PQ represents the productivity-neutral quantity of input. How is PQ calculated?

• A)PQ = Current period output / Base period output
• B)PQ = Current period output / Base period productivity ratio
• C)PQ = Prior period output / Base period productivity ratio
• D)PQ = Current period output / Standard quantity output

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