Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Question

Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Edition 5ISBN: 0073526940

Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Edition 5ISBN: 0073526940

Exercise 2

What is productivity? What does it measure?

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Answer 1

Productivity

Productivity basically means the ratio between the output and the input volume. It is concerned with the use of both labor and capital in such a manner to get maximum output at best of resources. It also measures the efficiency of the production in terms of the output per unit of input in a specified period of time. Productivity is the crucial factor of production performance relates to the firms and the nation. There are various types of productivity like material productivity, labor productivity, capital productivity, and the total factor productivity.