To Be of Any Value, a Measure of Performance Must

question 106

True/False

To be of any value, a measure of performance must be measurable, meaning that it is complete and accurate, and is based on actual results rather than on estimates.

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Definitions:

Marginal Cost

The elevation in comprehensive cost stemming from the creation of one more unit of a good or service.

Fixed Cost

Fixed costs are business expenses that remain constant regardless of the quantity of goods or services produced, such as rent or salaries.

Total Cost

The sum of fixed and variable costs incurred by a firm in producing and distributing a specified level of output.

Marginal Cost

The expenditure involved in fabricating one more unit of a product or service.