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Quantitative measures

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Quantitative measures

  • This topic has 0 replies, 1 voice, and was last updated 10 years ago by elle.
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  • June 18, 2015 at 3:28 am #257552
    elle
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    • Topics: 18
    • Replies: 20
    • ☆

    Performance measure.
    Efficiency measurement of input and outputs is illustrated in three different situations.
    1) Where input is fixed = Actual output / (divided by) maximum output obtainable for a given input
    2) Where output is fixed = Minimum input needed for a given output /(divided by)actual input
    3) Where both are variable = Actual output / (divided by)output input compared with standard output / (divided by) standard output
    Could you kindly explain how the results of these equations illustrate the efficiency measurements? I don’t understand what is being taught here and how to apply it.

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