Efficiency Measures, as the Term Is Used in the Service

question 60

Multiple Choice

Efficiency measures, as the term is used in the service efforts and accomplishments (SEA) literature, can be described as:

• A) Measures that relate the quantity or cost of resources used to units of output.
• B) Measures that relate to the amount of financial and nonfinancial resources used in a program or process.
• C) Measures that relate costs to outcomes.
• D) Measures that reflect either the quantity or quality of a service provided.

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Definitions:

Variable Expenses

Costs that change in proportion to the activity or volume of production in a business.

Variable Expense Ratio

The proportion of variable expenses to total sales, indicating how variable costs change with changes in sales volume.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit. This margin helps determine how each unit sold contributes to fixed costs and profits.

Per Unit

Denotes the cost or value associated with each individual unit of a product or service.