What is the formula for determining productivity?

O

A. Output/Labor

O

O

B. Capital x Input

C. Input/Output

D. Output/Input

D. Output/Input

Explanation:

Productivity is a measure of the efficiency level in a company's production processes. It is obtained by dividing total output by total inputs. As the formula suggests, productivity indicates how much output a business generates using a known quantity of inputs. Labor hours, natural resources, and capital are some of the inputs that enterprises are keen to establish their productivity.

Output refers to the number of units produced. It is the quantity of finished products that can be attributed to an inputs. For example, labor productivity measures how much units an employee or a team can produce per hour or per day.