Which of the Following Statements Best Describes the Business Value

question 94

Multiple Choice

Which of the following statements best describes the business value of improved decision making?

• A)Improved decision making creates better products.
• B)Improved decision making results in a large monetary value for the firm as numerous small daily decisions affecting efficiency,production,costs,and more add up to large annual values.
• C)Improved decision making enables senior executives to more accurately foresee future financial trends.
• D)Improved decision making strengthens customer and supplier intimacy,which reduces costs.
• E)Improved decision making creates a better organizational culture.

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Definitions:

Variable Costs

Costs that change in direct proportion to changes in the level of production or sales volume.

Fixed Administration Costs

Ongoing expenses not directly tied to production or sales volume, such as salaries of executive staff and office rent.

Inpatient Days

The total number of days that patients spend admitted to a hospital or healthcare facility for treatment.

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.