Productivity ratios are useful in measuring the extent to which a firm effectively utilizes the scarce resources that are available to the firm.

Question

Quizplus · Accepted Answer

Productivity ratios compare the output to the input of a process or system. They help to evaluate the efficiency and effectiveness of a firm's use of resources such as labor, capital, and materials. By analyzing productivity ratios, firms can identify areas where improvements can be made to increase profitability and competitiveness. Therefore, the statement is true.

Productivity Ratios Are Useful in Measuring the Extent to Which