Scenario 16-2. Shana's Chocolate Factory is currently making a profit. Shana, however, wishes to evaluate her scheduling methods and increase her efficiency. She feels that the process can be improved, which means more chocolates could be produced and sold. Christmas is nearing and she knows if she cannot keep up with demand, her customers may choose another chocolate factory. Chocolate and sugar are the major ingredients in her candies. She uses 2,000 pounds of sugar and chocolate combined to produce 10,000 pieces of candy.
-In Scenario 16-2, to measure the productivity of her business, Shana would ______.
A) divide output by sales
B) divide input by sales
C) divide input by expenses
D) divide total outputs by total inputs

Question

Quizplus · Accepted Answer

Productivity is measured by dividing the total outputs (in this case, pieces of candy produced) by the total inputs (in this case, pounds of sugar and chocolate used). This gives a measure of how efficiently resources are being converted into products.