Efficiency Measures, Such as Number of New Products Developed, May

question 30

Multiple Choice

Efficiency measures, such as number of new products developed, may be more useful than financial measures in:

• A) Discretionary cost centres.
• B) Revenue centres.
• C) Profit centres.
• D) Investment centres.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired or intended result.

Efficiency

The ability to accomplish a task or goal with the minimal waste of time, effort, and resources.

Credibility

The perception of being reliable, trustworthy, and knowledgeable, essential for effective communication and leadership.

Reciprocity/Obligation Approach

A social exchange principle suggesting that individuals feel compelled to return favors or respond in kind to the actions of others.