What typically indicates an increase in productivity within a company?

Prepare for NCEA Level 2 Business Studies Test. Study comprehensively with flashcards and varied question formats, each offering hints and detailed explanations. Ready yourself for success!

An increase in productivity within a company is indicated by an increase in output without a corresponding increase in the resources used. When a company can produce more goods or services with the same level of inputs—such as labor, materials, and capital—it demonstrates that it is utilizing its resources more efficiently. This efficiency might come from improved processes, better training, enhanced technology, or effective management practices.

Higher costs typically suggest inefficiencies or greater resource consumption, which does not align with the concept of increased productivity. A decreased workforce may initially suggest a reduction in costs, but without context, it doesn't directly imply increased productivity, as fewer employees could also lead to lower output. Lower sales indicate a decline in business performance rather than a productivity increase. Therefore, the choice highlighting increased output with the same resources is the correct indicator of enhanced productivity.

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