Scribd Logo
Upload

Welcome to Scribd!

  • Productivity Measures How Well Resources Are Used. It Is Computed As A Ratio of

    Uploaded by

    Ryan Miguel Rona
    6 views1 page
    Productivity is measured as a ratio of outputs to inputs, where outputs are goods and services produced and inputs include labor, materials, and other costs. This ratio can be used to measure the productivity of individual workers, machines, departments, entire firms, or even entire nations. For example, if a company produces $10,000 worth of finished goods in a week using labor, materials, and other costs totaling less than $10,000, then that company has added value and can be considered productive. A business transforms resources into products and services through a process of adding value, where the value received from customers exceeds the costs of inputs.

    Original Description:

    Assignment 1

    Original Title

    Assignment 1

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Productivity is measured as a ratio of outputs to inputs, where outputs are goods and services produced and inputs include labor, materials, and other costs. This ratio can be used to measure the productivity of individual workers, machines, departments, entire firms, or even entire nations. For example, if a company produces $10,000 worth of finished goods in a week using labor, materials, and other costs totaling less than $10,000, then that company has added value and can be considered productive. A business transforms resources into products and services through a process of adding value, where the value received from customers exceeds the costs of inputs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views1 page

    Productivity Measures How Well Resources Are Used. It Is Computed As A Ratio of

    Uploaded by

    Ryan Miguel Rona
    Productivity is measured as a ratio of outputs to inputs, where outputs are goods and services produced and inputs include labor, materials, and other costs. This ratio can be used to measure the productivity of individual workers, machines, departments, entire firms, or even entire nations. For example, if a company produces $10,000 worth of finished goods in a week using labor, materials, and other costs totaling less than $10,000, then that company has added value and can be considered productive. A business transforms resources into products and services through a process of adding value, where the value received from customers exceeds the costs of inputs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Ryan Miguel G.

    Rona
    LM4A
    A measure of how efficiently inputs are converted into outputs is
    called productivity.
    Productivity measures how well resources are used. It is computed as a ratio of
    outputs (goods and services) to inputs (labor and materials). The more productive a
    company is, the better it uses its resources. The equation is as follows:

    Productivity = output/input

    This measure of productivity can be used to measure the productivity of one worker
    or many, as well as the productivity of a machine, a department, the whole firm, or
    even a nation. Total productivity is used when measuring productivity for all inputs
    combined, such as labor, machines, and capital. For example, lets say a company
    produces weekly the equivalent of $10,000 in output in the form of finished goods.
    Lets also say that the weekly value of all the inputs combinedincluding labor,
    materials, and other costs
    A business needs resources in order to trade. The activities of a new business
    should be designed to turn those resources into products and services that
    customers are willing to pay for. This process is known as the "transformation
    process".
    If the value of what customers pay for the outputs is more than the cost of the
    inputs, then the business can be said to have "added value".
    So, in summary, the transformation process is about adding value.
    Sources:
    http://beta.tutor2u.net/business/reference/operations-the-production-process
    http://www.informit.com/articles/article.aspx?p=2167438&seqNum=5

    You might also like