Forsythe and Sorteberg are manufacturing companies. Comparative data for 20X1 and 20X7 are as follows: Assume that

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Forsythe and Sorteberg are manufacturing companies. Comparative data for 20X1 and 20X7 are as follows:

Assume that inflation has totaled 18% during these 6 years so that each 20X1 dollar is equivalent to 1.18 dollars in 20X7, due to inflation.

1. Compute 20X1 and 20X7 productivity measures in terms of revenue per employee for Forsythe and Sorteberg.

2. Compare the change in productivity between 20X1 and 20X7 for Forsythe with that for Sorteberg.

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Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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