Which metric is commonly used to measure productivity?

Boost your IGCSE Business Studies score by focusing on Section 2 – People in Business. Use flashcards and multiple-choice questions with explanations to prepare for your exam!

Multiple Choice

Which metric is commonly used to measure productivity?

Explanation:
Productivity is about how much output is produced from a given amount of input. The most common way to measure this for workers is units produced per worker, often calculated per hour or per day. This directly shows how much each individual contributes to output and how efficiently labor is being used. Labour cost per unit mixes in cost data and reflects cost efficiency, but it’s not a direct measure of output per person. Total revenue indicates sales performance, not how efficiently inputs are turned into products. The number of meetings is more about planning or coordination and doesn’t measure actual production output. Therefore, units produced per worker is the best measure of productivity.

Productivity is about how much output is produced from a given amount of input. The most common way to measure this for workers is units produced per worker, often calculated per hour or per day. This directly shows how much each individual contributes to output and how efficiently labor is being used.

Labour cost per unit mixes in cost data and reflects cost efficiency, but it’s not a direct measure of output per person. Total revenue indicates sales performance, not how efficiently inputs are turned into products. The number of meetings is more about planning or coordination and doesn’t measure actual production output. Therefore, units produced per worker is the best measure of productivity.

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