Maintaining a Satisfactory Relationship Between an Entity's Resource Inputs and Its

question 46

Multiple Choice

Maintaining a satisfactory relationship between an entity's resource inputs and its output of product or services is referred to as:

• A) planning.
• B) efficiency.
• C) organising.
• D) effectiveness.

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Definitions:

Financially Healthy

Describes a state where an individual or organization is in good financial condition, with stable cash flow, manageable debt, and solid financial indicators.

Investing Cash Flows

Cash movements related to the purchase and sale of investments and long-term assets, reflecting a company's investment activities.

Gross Margin

The difference between sales revenue and cost of goods sold, expressed as a percentage of sales revenue, indicating the efficiency of a company in managing its production costs.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue by comparing net credit sales to the average accounts receivable over a period.