If a College Cuts the Cost of an Education by Using

question 159

Multiple Choice

If a college cuts the cost of an education by using mostly part- time faculty and at the same time fails to adequately educate its students, it can be said to be doing the wrong things well. In other words, the college is

• A)neither efficient nor effective.
• B)efficient and effective.
• C)effective but not efficient.
• D)efficient but not effective.

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Definitions:

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss for the business.

Dollar Sales

A metric that represents the total monetary value of all sales transactions within a specific period, often used in retail and sales analysis.

Target Profit

The desired level of profit that a business plans to achieve within a specific period.

Contribution Format

A format for income statements where all variable expenses are subtracted from sales to calculate contribution margin, which then has fixed expenses subtracted to determine net operating income.