The Composite Unit in DEA

question 45

Multiple Choice

The composite unit in DEA

• A) has as output a weighted average of the outputs of the individual units.
• B) has as input a weighted average of the inputs of the individual units.
• C) has outputs greater than or equal to the outputs of any individual unit.
• D) All of the alternatives are correct.

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Definitions:

Operating Activities

Transactions and events related to the primary activities of a business, such as selling products or services, that affect the operational cash flow.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Profit Margin

Profit Margin is a financial metric that measures the amount of profit a business makes per dollar of revenue, indicating efficiency in controlling costs.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.