Which of the following is NOT true of capital productivity?
A) Changing the way a firm handles inventory to reduce capital expenditures can increase capital productivity.
B) It is an important measure of efficiency.
C) Higher capital productivity is achieved by eliminating unproductive assets or activities from a firm's capital.
D) It is measured by looking at a product's price.
E) It is the output produced by a dollar of capital invested in the business.

Question

Quizplus · Accepted Answer

Capital productivity is not measured by looking at a product's price, but rather by the amount of output produced per dollar of capital invested in the business. Options A, B and C are true statements about capital productivity.

Which of the Following Is NOT True of Capital Productivity