Inputs measure resources used. They include which items?

• A. Labor, materials, equipment and supplies; demand for services may also be considered
• B. Outputs produced
• C. Customer complaints only
• D. Revenue generated

Answer: (A)

The main idea is that inputs are the resources used to produce goods or deliver services. These resources include labor (people and their time), materials (raw materials and components), equipment (machines and tools), and supplies (consumables and incidentals needed for production). Sometimes, demand for services can influence how much of these resources you plan to use, but it isn’t a resource itself. Outputs produced, customer complaints, and revenue are outcomes or indicators, not resources used in production. That’s why the option listing labor, materials, equipment, and supplies best fits the concept of inputs.