CMA Intermediate · Cost Accounting · Employee Costs
Which of the following is the most direct measure of labour productivity in a manufacturing unit?
Output per labour hour is the most direct measure of labour productivity because it relates the physical output achieved to the labour time used. Idle time percentage, turnover rate and labour cost to sales are useful control indicators but do not measure output per unit of labour input.
- AOutput per labour hourCorrect
- BLabour cost per rupee of sales
- CIdle time as a percentage of paid time
- DLabour turnover rate
Explanation
Labour productivity relates output to the labour input, usually output per labour hour. The others measure cost relation, idle time, or attrition, which affect cost control but do not directly measure output per unit of labour.
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