Premier Products Co.has provided the following information for last year:
$$\begin{array} { | l | r | r | }
\hline \text { Material costs } & \$ 150,000 & \
\hline \text { Labor hours } & \$ 45,000 & \
\hline \text { Overhead costs } & \$ 117,000 & \
\hline \text { Product produced } & 8,000 & @ \text { selling price of } \$ 45 i e a c h \
\hline
\end{array}$$The total factor productivity measure is:
A) $150,000.
B) $312,000.
C) 1.154.
D) 0.832.

Question

Premier Products Co.has provided the following information for last year: 
$$\begin{array} { | l | r | r | } 
\hline \text { Material costs } & \$ 150,000 & \
\hline \text { Labor hours } & \$ 45,000 & \
\hline \text { Overhead costs } & \$ 117,000 & \
\hline \text { Product produced } & 8,000 &  @   \text { selling price of } \$ 45 i e a c h \
\hline
\end{array}$$The total factor productivity measure is:
A) $150,000.
B) $312,000.
C) 1.154.
D) 0.832.

Quizplus · Accepted Answer

Total factor productivity (TFP) measure is calculated by dividing the total output by the total input. The given information does not provide the values of the total output and total input separately. Therefore, we cannot calculate the TFP directly from this information. 
Option A is not a valid TFP measure.
Option B is also not a valid TFP measure.
Option C might be the correct answer because TFP is typically expressed as a ratio, and this option provides a numeric value. However, we cannot confirm this answer without the actual values of total input and output.
Option D is not a valid TFP measure.
Thus, it is best to answer Option C as the TFP measure.

Premier Products Co The Total Factor Productivity Measure Is: A) $150,000

Premier Products Co The Total Factor Productivity Measure Is:
A) $150,000