company made 40 units of product, which is valued by its standard cost of $1,000 (before markups for other expenses and profit). The accounting department reported that for this job the actual labor cost were $ 500, $1000 for materials and $300 for other. Calculate the productivity if there are 3 workers?
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Before setting a price for your product, you have to know the costs of running your business. If the price for your product or service doesn't cover costs, your cash flow will be cumulatively negative, you'll exhaust your financial resources, and your business will ultimately fail.
To determine how much it costs to run your
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