All of the following are true regarding productivity EXCEPT:
A)that an example of raw material productivity is the weight of the final product to the weight of the raw materials.
B)that the most widely accepted definition of productivity is the ratio of operating income over sales.
C)that an example of machine productivity is a machine's output per hour.
D)machine productivity is an effective method of relating process results with financial results.

Question

Quizplus · Accepted Answer

The most widely accepted definition of productivity is NOT the ratio of operating income over sales. The correct definition of productivity is the ratio of output (goods/services) to input (resources). This can be measured in various ways such as labor productivity, raw material productivity, and machine productivity. Operating income over sales is a ratio used to measure profit margins, not productivity.

All of the Following Are True Regarding Productivity EXCEPT