In Identifying a Process Against Which to Benchmark a Particular

question 46

Multiple Choice

In identifying a process against which to benchmark a particular process,a company should ______.

• A)choose a process only from an ISO-certified firm
• B)choose a process in a firm in any industry
• C)choose a process in its own company
• D)choose a process in the same department

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Shut Down

The process of ceasing operations, often temporarily, as a strategic or economic decision by a business.

Short Run

A period in economics where at least one input is fixed and cannot be changed.

Average Variable Costs

The total variable costs divided by the quantity of output produced. It represents the variable cost per unit of output.