Efficiency MIS Metrics Focus on the Extent to Which a Firm

question 295

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 the above

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Definitions:

Unit Cost

Unit cost is the total expense incurred to produce, store, and sell one unit of a product or service, including both fixed and variable costs.

Operating Profit

Income from business operations after operating expenses are subtracted from gross profits, but before taxes and interest expenses.

Operating Expense

ongoing costs for running a product, business, or system.

Operating Profit

The earnings of a business from its core operations, excluding the effects of interest and taxes.