If the quantity of manufactured jackets is 2250000 units and the leather used to produce the output is 3500000 m², then direct partial productivity of material will be ___________?
Correct answer: A. 0.642 unit of jacket per ² of leather
- A. 0.642 unit of jacket per ² of leather
- B. 0.342 unit of jacket per ² of leather
- C. 0.442 unit of jacket per ² of leather
- D. 0.542 unit of jacket per ² of leather
Explanation
Direct material productivity equals output divided by material input: 2,250,000 ÷ 3,500,000 = 0.642857, or approximately 0.642 jacket per square metre of leather. The other figures do not result from this division.
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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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