BUSI 601 Chapter Notes - Chapter 16: Kilowatt Hour, Lean Manufacturing, Factors Of Production
12 Sep 2016
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Chapter 16: operational performance measurement further analysis of productivity. Uses of flexible budget by sales variances (2: analyzing differences between actual sales and the master budget sales, analyzing changes in sales over the prior year. Determinants of productivity (3: control of waste. Fluctuations in demand due to changes in the business cycle or for other reasons. Operational productivity: the ratio of output units to the number of units of an input factor. Financial productivity: the ratio of output to the dollar amount of one or more input factors. Considers the effects of both cost and quantity of an input resource on productivity. Can be used in operations that use more than one production factor: operational. Total productivity: a productivity measure that includes all input resources in computing the ratio of the output attained to the input resources consumed, unit or sales value of output / total cost of all input resources, limitation.
