Question

If unit-costing is used to assess productivity, can we still use productivity benchmarks or standards? 300 words

Answer 1

DIFFERENT COMPANIES WILL HAVE DIFFERENT BENCHMARKS,The productivity benchmark of companies belonging to the same industry may even have subtle differences in their productivity benchmarks. In its basic economic definition, productivity is the ratio of output to input. In most cases, it entails to production and processes. Mostly, the output refers to the product or service in production while the inputs are the resources used for conversion process.

Benchmark, on the other hand, is the standard by which all items are compared and measured.

The benchmark of one industry can be different from that of another industry, which can be attributed mostly to the differences in products or services.

EVENTHOUGH WE USE UNIT COSTING WE HAVE TO USE PRODUCTIVITY BENCHMARKS AND STANDARDS