Typical measures for cash flow include Net Present Value (NPV), Return on Investment (ROI), and internal Rate of Return (IRR). What is the formula for productivity?
A)Productivity = (T-OE)/I
B)Productivity = T-OE
C)Productivity = TxOE
D)Productivity = T/OE

Question

Quizplus · Accepted Answer

Productivity = T/OE is the formula for productivity. T= Throughput and OE = Operating Expense. Throughput is the rate at which the system generates cash though sales revenue.

Typical Measures for Cash Flow Include Net Present Value (NPV)