For the firms in Problem 1, you have been asked to make a

For the firms in Problem 1, you have been asked to make a report to the management of Firm A. What are some of the caveats relating to accounting practices that you would include in the report? Which numbers should be interpreted cautiously?
Problem 1
A company has gathered the following financial information for itself and a competing firm. They wish
to compare productivity for the two firms (all numbers in 000s).
a. Compute partial and total factor productivity measures for Firms A and B.
b. What is the picture you get of the two firms?
c. What would you suggest to the management of Firm B?
 

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