An Effective Way to Cut Costs Is to Eliminate Activities

question 68

True/False

An effective way to cut costs is to eliminate activities that do not improve the product attributes that customers value.

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, representing efficiency.

Opportunity Cost

The cost of choosing one alternative over another, represented by the benefit foregone from not choosing the next best alternative.

Inefficient

Referring to a lack of effectiveness, not achieving maximum productivity; resulting in a waste of time, energy, or material.

Efficient

The state of achieving a maximum output from given resources, with minimal waste or inefficiency.