The Two Performance Variables That Must Be Considered When Managing

question 29

True/False

The two performance variables that must be considered when managing logistical activities are the total distribution costs and the level of logistical service.

---

Definitions:

Value of the Marginal Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital, in the production process.

Factor's Price

The payment for the use of a factor of production, such as wages for labor, rent for land, or interest on capital.

Value of the Marginal Product

The additional revenue generated from employing one more unit of a factor of production.

Total Revenue

The sum of income a company earns from selling products or providing services before deducting any costs.