How Is Efficiency Different from Effectiveness

question 9

Multiple Choice

How is efficiency different from effectiveness?

• A) Efficiency means producing a product or service at the lowest cost and effectiveness means to market those products or services so as to increase sales.
• B) Efficiency and effectiveness are just two terms for the same basic concept.
• C) Efficiency is about low cost production while effectiveness is about finding ways to give customers more for their money
• D) Efficiency can be measured and effectiveness cannot.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to its net profit or loss.

Exchange Rates

The rate at which one currency can be exchanged for another, which affects international trade and investments.

Equipment

Tangible property used in business operations that is not considered inventory and is expected to be used long-term.

Functional Currency

The currency of the primary economic environment in which an entity operates, and in which it generates and spends cash.