For an Organization Focused on Profit, Define Two Commonly Used

question 7

Essay

For an organization focused on profit, define two commonly used financial measures and explain what they indicate about performance.

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Definitions:

Productivity

Productivity is the measure of efficiency with which goods and services are produced, often quantified as output per unit of input.

Quality

The degree to which a product, service, or process meets specified requirements and satisfies customer expectations.

Resource Utilization

The effective and efficient use of assets, materials, and labor within an organization to maximize output or productivity.

Competitive Advantage

denotes a condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.