Productivity Measures and Calculations

This video tutorial explains how to calculate productivity, defined as the ratio of output to input. It covers partial productivity, focusing on a single input like labor, and multifactor productivity, which considers multiple inputs. Three examples illustrate these concepts: calculating labor productivity for a fruit processing company, multifactor productivity for a wrapping paper company, and a detailed multifactor productivity calculation involving labor, material, and overhead costs.

What is the basic definition of productivity?

• The ratio of input to output

• The ratio of output to input

• The sum of input and output

• The difference between input and output

Which of the following is NOT a partial productivity measure?

• Total productivity

• Labor productivity

• Material productivity

• Capital productivity

What does multifactor productivity consider?

• Only labor input

• Only capital input

• Multiple inputs like labor, machine, and energy

• Only material input

In the fruit and vegetable company example, what is the labor input?

• 4 workers

• 1 hour

• 2 labor hours

• 400 cases

How is labor productivity calculated in the fruit and vegetable company example?

• Labor hours divided by output

• Output divided by number of workers

• Output divided by labor hours

• Input divided by output

What is the output in the wrapping paper company example?

• 320 overhead

• 50 material cost

• 160 labor cost

• 2000 rows of paper

In the wrapping paper company example, what is the multifactor productivity?

• 4.00

• 3.77

• 3.00

• 2.50

What is the usable output in the last example?

• 100 units

• 600 units

• 300 units

• 200 units

How is the labor cost calculated in the last example?

• 3 workers * 6 hours * $10

• 3 workers * 6 hours * $20

• 3 workers * 8 hours * $10

• 3 workers * 8 hours * $20

What is the overhead cost in the last example?

• $500

• $600

• $720

• $800