Productivity is measured by high customer sales volume divided by low producer expenses or

Question

Quizplus · Accepted Answer

Productivity is the measure of how effectively and efficiently a company is producing output (products or services). Effectiveness refers to achieving the desired results, while efficiency means doing so with minimal waste or effort. Therefore, measuring productivity as high customer sales volume divided by low producer expenses reflects a combination of both effectiveness and efficiency. Choice B is incorrect because dividing efficiency by effectiveness would not provide an accurate measure of productivity. Choice C is incorrect because it only measures the labor cost, not the overall efficiency of the production process.

Productivity Is Measured by High Customer Sales Volume Divided by Low