COST ACCOUNTING
BALANCED SCORECARDS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A major disadvantage of total factor productivity is that it measures the combined productivity of all inputs to produce output
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Partial productivity and total factor productivity measures work best togetherbecause the strengths of one are the weaknesses of the other.
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Total factor productivity is calculated by dividing the costs of all inputs used by the quantity of output produced.
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The higher the inputs for a given quantity of outputs or the lower the outputs for a given quantity of inputs, the higher the level of productivity.
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Detailed explanation-1: -Partial productivity and total factor productivity measures work best together because the strengths of one are the weaknesses of the other.
Detailed explanation-2: -Answer and Explanation: Productivity = Output / Inputs .
Detailed explanation-3: -A partial productivity measure relates output to a single input. Total factor productivity (or TFP) relates an index of output to a composite index of all inputs. This report discusses the strengths and weaknesses of each type of productivity measure from theoretical and methodological perspectives.
Detailed explanation-4: -A partial productivity measure relates output to a single input; examples include labour productivity (output per hour worked), capital productivity (output per unit of capital), and energy productivity (output per joule of energy used).
Detailed explanation-5: -Labor productivity: measures the total economic output (revenue) per labor hour. Capital productivity: determines the efficiency in which capital (such as machinery) is used to produce a specific output. Material productivity: measures the total economic output generated per unit of material used.