Efficiency MIS Metrics Focus on the Extent to Which a Firm

question 205

Multiple Choice

Efficiency MIS metrics focus on the extent to which a firm is using its resources in an optimal way, while effectiveness MIS metrics focus on _________.

• A)understanding how successful a firm is at achieving its goals and objectives
• B)analyzing if a firm is doing the right things
• C)setting the right goals and ensuring they are accomplished
• D)All of these are correct.

---

Definitions:

Gross Profit

is the financial gain obtained after subtracting the cost of goods sold (COGS) from total revenue.

Sales Revenues

The income earned by a company from its sales of goods or the provision of services, before any costs or expenses are deducted.

Gross Profit Margin

A financial ratio that indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the efficiency of a company in managing its production and labor costs.