Which of the Following Is the Primary Role of an Efficiency

question 18

Multiple Choice

Which of the following is the primary role of an efficiency expert?

• A)Looking for additional resources to increase productivity
• B)Implementing a system that can store excess inventories
• C)Introducing new equipment that will increase output
• D)Removing every bit of waste in production operations
• E)Employing more people to complete a task quicker

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Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit, but before income taxes and interest are deducted.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity levels, allowing for more accurate budgeting in variable cost areas.

Spending Variance

The difference between the actual spending and the budgeted or planned amount, often examined to manage and control expenses.

Spending Variance

The difference between the actual spending and the budgeted or planned spending in a budgetary control system.