10 Questions
Which of the following is a common method of measuring labour activity?
Production
What is productivity?
The relative measure of hours actually taken and hours that should have been taken
In the given example, how many units should the employee have made in 40 hours of work?
120 units
What happens if there is an increase in production without an increase in productivity?
There will be no impact on unit costs
What is the relationship between productivity and the hours actually taken to make the output?
They are inversely proportional
True or false: Labour turnover is a method of measuring labour activity.
False
True or false: Productivity measures the efficiency with which output has been produced.
True
True or false: An increase in production without an increase in productivity will reduce unit costs.
False
True or false: In the given example, the employee exceeded the expected production in 40 hours of work.
True
True or false: Measuring production is a way to measure the hours actually taken to make the output.
False
Test your knowledge on accounting for labour costs and measuring labour activity in management accounting. This quiz covers topics such as remuneration methods, recording labour costs, labour turnover, and more. Challenge yourself to see how well you understand these concepts!
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