Productivity of resources of business decides the prospects of the business. It is the productivity of business resources which can bring down curtains to the business at any time. It is sometimes very ridiculous to note the fact that such a an important factor of business success gets not much importance in accounting practices and standards that are governing these accounting practices world over. Productivity accounting is an accounting technique that takes into account total resource productivity to measure the impact that change in the productivity of resources has on the change in the profitability of business. Change in total resource productivity and the effects of these changes on the corresponding change in business profitability. Productivity accounting helps in measuring, evaluating and monitoring the financial performance of a business enterprise in terms of profitability with respect to productivity of its resources. Protective accounting aims at monitoring how far growth or decline in productivity of an enterprise has affected Return on Investment from its historical performance or in comparison to its adversaries or in accordance to its budgeted targets. This paper is an sincere endower to examine the pro and cons of productivity accounting and establish the need of adopting it in regular accounting practices.

Keywords: Four-Grid Framework, Productivity Price Recovery, Nine Box Diagram.