Final answer:
Comparing financial metrics such as profits and sales is a conventional approach for performance review in businesses. Profits are derived by subtracting total costs from total revenue, while sales indicate market position and revenue flow. Additional productivity measures beyond production rate per hour can include labor costs and output quality.
Step-by-step explanation:
When reviewing performance, particularly in a business or financial context, a comparison of financial metrics is often utilized. Financial metrics that one might compare to assess performance include profits, which are calculated by comparing total revenue and total costs, and sales, which can provide insight into the company's market position and revenue generation. Other financial metrics of interest might include analyzing profits and losses against the average cost curve, explaining the shutdown point of a business, and determining the price at which a firm should continue producing in the short run to maintain profitability.
While the amount produced per hour of work is a traditional measure of productivity, there are indeed other ways to gauge productivity. These methods can incorporate various factors, such as labor costs, efficiency, and quality of output, which all contribute to the overall productivity of a business. Analyzing performance through financial metrics affords a multifaceted view, enabling a comprehensive evaluation of a business's operational success.