Structural productivity

Structural productivity
See also
Standard productivity Capacity analysis Added value chain Bank efficiency ratio Distribution cost Capital turnover Cost calculation Incremental sales Measurement of innovation

Structural productivity is a relation of final result of particular activity to the cost of performing this activity. Here you need to take into account the presence of settlement keys. They are used to divide the final result on each type of activity. This takes into account the principle of appropriateness of cost for i-th activity and its share in final results. Therefore, it is recommended that the primary settlement key was the productive cost indicator, since it points to the economic use of resources.

The computational formula

$P={S_{n} \over {\sum KM_{i}}}$

$P_{i}={S_{n_{i}} \over KP_{i}}$

where:

• P - general structural productivity
• P_i - structural productivity of i-th type of activity
• KM_i - cost of i-th activity
• S_{ni</sub - sales revenue settled on i-th type of activity.}

This indicator can be interpreted as a measure of ability to produce effects, since a single factor can create complex manufacturing effect. The purpose of the productivity calculations is to evaluate the productivity of manufacturing factors of each type of activity. Productivity can have also the diagnostic function and inform of existence of synergistic effect.

References

• Baumol, W. J. (1986). Productivity growth, convergence, and welfare: what the long-run data show. The American Economic Review, 1072-1085.