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Calculate and comment on the labour efficiency

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Question - Clean Home LLC is a limited liability company incorporated in Sultanate of Oman. The company manufactures and distributes a wide range of highly reputed and successful brands covering various segments like detergents powders, liquid detergents, soaps, shampoos, allied laundry aids and other household cleaners. Following are the information given regarding the production unit of 'CleanHome' - Detergent powder pack (1.5 kg) for the quarter ended 31st December 2020.

The production unit's budgeted output for the quarter ended 31st December 2020 was 2000 units of detergent powder packs. The budgeted time to produce the given budgeted units for the given period is 5000 labour hours. For the quarter ended 31st December 2020 the actual number of CleanHome' - Detergent powder packs produced by the production unit was 2500 units and the actual hours taken by the labour force was 5500 hours.

A. Calculate and comment on the labour efficiency, capacity, and production volume ratios of given production unit.

B. Discuss the limitations of financial performance measure and advice Cleam Home LLC management the suitable approach towards measuring the company's performance.

Reference no: EM133020077

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