Fact-Based Management Requires an Understanding of Variation,deciding What to Measure,working

question 22

True/False

Fact-based management requires an understanding of variation,deciding what to measure,working correctly with data,and using the resulting information appropriately.

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Definitions:

Opportunity Cost

The cost of foregone alternatives when one option is chosen over another, essentially the benefits you could have received by taking an alternative action.

Marginal Benefit

The increased benefit derived from the utilization of one more unit of a good or service.

Marginal Cost

The cost added by producing one additional unit of a product, focusing on changes in overall cost with slight increases in production.

Sunk Costs

Costs that have already been incurred and cannot be recovered.