AACE International Exam CCP Topic 6 Question 13 Discussion

Productivity is defined as the measure of the number of units completed divided by the work-hours consumed. It is a key performance indicator in construction and other project-based industries, reflecting how efficiently resources are being used to produce outputs.

Key Points:

Productivity Calculation:

Productivity = Number of units completed / Work-hours consumed.

Higher productivity means more output is being generated per unit of time, indicating efficient use of resources.

Other Terms:

Lined Value: Not a standard term related to productivity.

Credit Work-Hours: A concept related to earned work-hours, not a direct measure of productivity.

Cost Performance Index (CPI): A measure in earned value management indicating the cost efficiency of budgeted resources, calculated as EV/AC.

Conclusion: The correct answer is C. Productivity because it directly refers to the efficiency of labor in terms of output per work-hour.