The Management of Activities to Improve the Value Received by the Customer

question 131

Multiple Choice

The management of activities to improve the value received by the customer and the competitiveness of the organization is:

• A)Cost driver analysis.
• B)Customer profitability analysis.
• C)Activity-based management.
• D)Performance measurement.
• E)Activity analysis.

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Definitions:

Excess Burdens

The economic inefficiencies or losses that result from imposing taxes or government policies.

Principle of Second Best

An economic theory that suggests when a condition for a perfect market cannot be met, the next-best solution may involve violating another condition to improve efficiency.

Distortionary Tax

A tax that causes people to alter their behavior and make different economic decisions than they would in a free market, potentially leading to inefficiency.

Efficiency

The extent to which resources are utilized optimally to achieve desired outcomes with minimum waste or effort.