Production managers prefer the use of physical measures of performance rather than monetary measures in reports covering short reporting periods.

Question

Quizplus · Accepted Answer

Physical measures such as units produced or hours worked are more relevant for short-term monitoring and control of production processes compared to monetary measures such as revenue or profit. This is because monetary measures can be influenced by factors such as pricing, discounts, and exchange rates, which are not directly related to production efficiency.

Production Managers Prefer the Use of Physical Measures of Performance