Difficulty: Easy
Correct Answer: Output per man-hour of labour
Explanation:
Introduction / Context:
Productivity is a fundamental performance metric that relates outputs to the inputs required to produce them. This question distinguishes true productivity from raw production counts or cost metrics.
Given Data / Assumptions:
Concept / Approach:
Productivity = Output / Input. For labour productivity, the input is labour time. Therefore, output per man-hour directly measures how efficiently labour time converts into deliverables. By contrast, production count per day ignores input magnitude; cost ratios measure economics, not physical productivity.
Step-by-Step Solution:
Verification / Alternative check:
If Team A makes 100 units with 50 man-hours (2 units/hour) and Team B makes 120 units with 80 man-hours (1.5 units/hour), productivity shows Team A is more efficient even though Team B made more items.
Why Other Options Are Wrong:
Option a is throughput; options c and d are cost metrics; none correctly capture labour productivity.
Common Pitfalls:
Confusing productivity with utilization or with profit margins, and forgetting to normalize output by an input resource such as hours, capital, or energy.
Final Answer:
Output per man-hour of labour
Discussion & Comments