What does the profit linkage rate?
A)It calculates the cost of the inputs that would have been used in absence of any productivity change and compares it to the cost of the inputs actually used for the current period.
B)It calculates the cost of the inputs that would have been used in absence of any productivity change and compares it to the cost of the inputs actually used for the prior period.
C)It calculates the cost of the inputs that would have been used,plus any productivity changes,and compares it to the cost of the inputs actually used for the current period.
D)It calculates the cost of the outputs that would have been produced and compares it to the cost of outputs produced for the current period.

Question

Quizplus · Accepted Answer

The profit linkage rate calculates the cost of the inputs that would have been used in absence of any productivity change and compares it to the cost of the inputs actually used for the current period. This helps in understanding the impact of productivity changes on costs.

What Does the Profit Linkage Rate