The Performance Ratio That Measures the Efficiency of the Organization

question 64

Multiple Choice

The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) _____________ ratio.

• A) activity
• B) leverage
• C) profit
• D) liquidity
• E) inventory turnover

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Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product or service.

Marginal Benefit

The extra enjoyment or benefit derived from acquiring or generating another unit of a product or service.

Total Benefit

The complete gain or value derived from consuming a good or service, encompassing all individual benefits.

Lane Costs

Lane costs refer to the expenses associated with the transportation and logistics of goods along specific routes or lanes in a supply chain.