Which of the following statements about productivity measures is TRUE?
A)They may only be stated in terms of dollars.
B)Total factor productivity explicitly considers gains from using fewer inputs, not from substituting inputs.
C)Partial productivity measures allow managers to evaluate the effect of input substitutions on overall productivity.
D)It is important to use the results as a starting point for analysis.
E)The productivity measure may not be made for companies with multiple products.

Question

Quizplus · Accepted Answer

Using productivity measures as a starting point for analysis is important because it helps identify areas for improvement and guides decision-making processes.

Which of the Following Statements About Productivity Measures Is TRUE