Total factor productivity:
A) is a ratio of the value of output to the value of all key inputs.
B) is the same thing as the production volume variance.
C) focuses on an individual input.
D) includes materials and labor but not overheaD.
Total factor productivity is a ratio of the value of output to the value of all key inputs.

Question

Quizplus · Accepted Answer

Total factor productivity is defined as the ratio of the value of output to the value of all key inputs. It measures the efficiency of all factors of production, including materials, labor, and overhead, in producing output. It is not the same thing as the production volume variance, which measures the difference between actual and expected output volumes. Total factor productivity focuses on all inputs as a whole, rather than on an individual input.

Total Factor Productivity