Resources and Output Measures Every activity needs resources to accomplish the task it has to do. Resources might include materials, energy or fuel, labor , and capital. These inputs are combined to produce an output. For example, if the activity is moving materials, the inputs could include crates (materials), fuel (energy), a forklift operator (labor), and a forklift (capital). The output would be moved materials. But how do we measure this output? One measure is the number of times the activity is performed. For example, suppose that the activity is moving materials from the storeroom to the assembly line. A good measure of output is the number of moves. The more moves that are made, the higher the cost of moving. Therefore, we could say that the number of moves is a good output measure for the activity of moving materials. Exhibit 3-4 illustrates the relationship between inputs, activities, output, and cost behavior.