Which of the Following Statements Is True About Increasing the Efficiency

question 40

Multiple Choice

Which of the following statements is true about increasing the efficiency of an operating system?

• A)Increased efficiency raises production costs.
• B)Efficiency increases when required resources increase.
• C)Increasing resources increases efficiency.
• D)Improving efficiency lets an organization make a greater profit.
• E)Increased efficiency attracts more customers.

---

Definitions:

Variable Costs

Expenses that directly fluctuate in relation to production or business operations volume.

Maintenance Hours

Maintenance hours tally the time spent on maintaining and repairing equipment, machinery, or systems, crucial for ensuring operational efficiency and longevity.

Return On Investment (ROI)

A financial ratio used to measure the profitability of an investment, calculated by dividing the net profit from the investment by its initial cost.

Residual Income

The income that remains after deducting all required costs of capital and operating expenses from net income.