The Drawback of the SPM Is ______

question 54

Multiple Choice

The drawback of the SPM is ______.

• A)it is difficult to use
• B)considers only operational measures
• C)nonfinancial measures are not factored into the model
• D)it requires 5 to 10 years of historical data

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Definitions:

Total Costs

The sum of all costs incurred by a business in producing goods or services, including both fixed and variable costs.

Units

A measure of quantity used to quantify the amount of production output, inventory, or sales.

Variable Costs

Expenses that change in proportion to the production or sales figures.

Per Unit

A measure or cost expressed per single item or quantity of a product or service.