Efficiency Measures, as the Term Is Used in the Service

question 60

Multiple Choice

Efficiency measures, as the term is used in the service efforts and accomplishments (SEA) literature, can be described as:

• A) Measures that relate the quantity or cost of resources used to units of output.
• B) Measures that relate to the amount of financial and nonfinancial resources used in a program or process.
• C) Measures that relate costs to outcomes.
• D) Measures that reflect either the quantity or quality of a service provided.

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Definitions:

Option to Wait

The strategic choice to delay a decision or an investment to gather more information or wait for a more favorable market condition.

Option to Abandon

A business decision making tool that allows a company to cease an investment or project if it turns out to be financially nonviable, minimizing losses.

Direct Labor Costs

The total cost of all the labor that is directly involved in the production of goods or the performance of services.

Variable Cost

Expenses that undergo alteration in response to the volume of production executed.