The Process of Comparing Key Points Within One's Own Business

question 38

Multiple Choice

The process of comparing key points within one's own business with comparable points in another external entity is referred to as

• A) Six-sigma
• B) Feedback control
• C) Benchmarking
• D) Statistical process control

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Definitions:

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Average Total Cost

The complete expense of manufacturing (encompassing both fixed and variable expenditures) divided by the overall amount of goods produced.

Output

The quantity of goods or services produced by a firm, industry, or economy within a certain period.

Per-Unit Cost

The cost associated with producing one unit of a product, calculated by dividing total production costs by the number of units produced.