Benchmarking

question 49

Multiple Choice

Benchmarking

• A)is an approach to standard setting that is used to identify opportunities for activity improvement.
• B)uses best practices as the standard for evaluating activity performance.
• C)Both a and b are correct.
• D)Neither a nor b is correct.

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Definitions:

Economic Loss

A monetary loss that occurs when the cost of producing a good or service exceeds the revenue gained from selling it.

Economically Efficient

A situation where resources are allocated in a way that maximizes the net benefit to society or an economy.

Total Costs

The sum of all expenses a firm incurs in the production of goods or services, including both fixed and variable costs.

Market System

A financial framework where the choices about investment, production, and allocation are directed by the price indicators generated through the dynamics of supply and demand.