Which of the Following Is Not Likely to Diminish Efficiency

question 1

Multiple Choice

Which of the following is not likely to diminish efficiency?

• A) Lack of adequate expertise and information
• B) Lack of adequate operation and maintenance budgets
• C) When government bureaucrats are not adequately held accountable
• D) When households are required to pay a user fee for the infrastructure service

---

Definitions:

Differential Costs

The difference in total costs between two alternatives, helping in decision-making processes where alternatives are being considered.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered by future actions.

Sunk Cost

Refers to money that has already been spent and cannot be recovered, which should not influence future business decisions.

Standard Cost Formula

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under normal conditions, used for budgeting and cost control.