Question: Refer to Cornerstone Exercise 15 3 Choctaw Company provides the following

Refer to Cornerstone Exercise 15.3. Choctaw Company provides the following additional information so that total productivity can be valued:
Required:
1. Calculate the cost of inputs in 2015, assuming no productivity change from 2014 to 2015.
2. Calculate the actual cost of inputs for 2015. What is the net value of the productivity changes? How much profit change is attributable to each input’s productivity change?
3. What if a manager wants to know how much of the total profit change from 2014 to 2015 is attributable to price recovery? Calculate the price-recovery component, and comment on its meaning.

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  • CreatedSeptember 01, 2015
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