Many Organizations Want to Be Effective and Efficient, but Simply

question 3

True/False

Many organizations want to be effective and efficient, but simply stating these objectives is not adequate unless metrics are used to gauge whether these objectives are achieved.

---

Definitions:

Credit Policy

Guidelines a company follows to determine credit terms for customers, such as payment period and discounts for early payment.

Restocking Cost

The expenses involved in replenishing inventory or stock.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.