Potential Benefits Are the Process of Analyzing an Organization's Activities

question 138

True/False

Potential benefits are the process of analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred for doing so;this process usually also includes a comparison with the activities,added value,and costs of other organizations for the purpose of making improvements in the organization's operations and performance.

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Definitions:

Compounded Annually

A method of calculating interest where the interest earned or paid is added to the principal, resulting in interest on interest in subsequent periods.

Effective Rate

The interest rate on a loan or financial product, adjusted for the effect of compounding over a given period.

Loan Proceeds

The amount of money that is disbursed to the borrower from the lender minus any fees or costs associated with the loan.

Rate of Return

The profit or deficit incurred on an investment throughout a designated period, shown as a percentage of the investment's starting value.