Asked in a 2014 paper

Considering two years 2013 and 2014, the quantity of output produced in 2014 is divided by cost of input used in 2013, to produce output in 2014 to calculate ___________?

Correct answer: B. benchmark total factor productivity

  • A. benchmark engineered productivity
  • B. benchmark total factor productivity
  • C. benchmark partial productivity
  • D. benchmark total productivity

Explanation

Benchmark total factor productivity compares output with the combined input resources used to produce it, using prior-year input cost as the benchmark. Because the measure uses total input cost rather than one specific input, it is total factor productivity.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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