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CMA Intermediate · Operations Management and Strategic Management · Productivity Management and Quality Management

Which of the following correctly defines single-factor (partial) productivity of a manufacturing unit?

Single-factor or partial productivity is the ratio of total output to one particular input, such as labour hours or material used. It differs from total-factor productivity, which combines all inputs in money terms, and from profitability ratios, which measure financial return.

  1. ARatio of total output to the quantity of one particular input usedCorrect
  2. BRatio of total output to the sum of all inputs expressed in money terms
  3. CRatio of profit earned to the capital employed
  4. DRatio of sales revenue to the number of customers served

Explanation

Partial productivity relates output to only one input such as labour hours, material or machine hours. Total-factor productivity uses all inputs in common monetary terms, which is why the second option describes a different measure. Profit on capital employed is a profitability measure, not productivity.

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