Vidyalelo
Management · Q86

Management Accounting

Graduate and Post Graduate · Management · question 86

Q86

Quantity of produced output is divided with cost of all used inputs to calculate

A.
engineered productivity
B.
targeted productivity
C.
partial productivity
D.
total factor productivity
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Quantity of produced output is divided with cost of all used inputs to calculate total factor productivity. Total factor productivity (TFP) is a measure of productivity calculated by dividing economy-wide total production by the weighted average of inputs i.e. labor and capital. It represents growth in real output which is in excess of the growth in inputs such as labor and capital.