Which of the following statements regarding productivity analysis is false?
A) The most useful input unit for productivity analysis is total sales per salesperson.
B) Productivity is typically measured in terms of ratios between outputs and inputs.
C) Sales productivity and profitability are highly interrelated.
D) Productivity analysis is managerial oriented.
E) Improvements in sales productivity should be achieved by an increase in output with the same level of input.

Question

Quizplus · Accepted Answer

Total sales per salesperson is not necessarily the most useful input unit for productivity analysis as it only focuses on one aspect of productivity related to sales. Other input units such as labor hours, material costs, and overhead expenses should also be considered in productivity analysis.

Which of the Following Statements Regarding Productivity Analysis Is False