Joseph Wishes to Increase the Operational Efficiency of His New

question 63

Multiple Choice

Joseph wishes to increase the operational efficiency of his new startup. In order to achieve this, what should Joseph do?

• A)Joseph should use integrated data stored in his firm's central database to analyze its day-to-day activities.
• B)Joseph should avoid analyzing his firm's distribution systems as they do not play a role in the firm's daily activities.
• C)If Joseph plans to support formally defined and documented activities in his firm, he should use a dynamic planning system over a structured planning system.
• D)If Joseph plans to include less specific and fluid activities in his firm, he should use a structured planning system over a dynamic planning system.

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Definitions:

Pool Products Division

A segment within a company focused on developing, manufacturing, and selling products related to swimming pools.

Transfer Price

The price charged for goods, services, or intellectual property transferred between divisions within the same company.

Producing Departments

Departments or divisions within an organization directly involved in producing the goods or services offered to customers.

Fixed Costs

Costs that do not change with the level of production or sales activity within a certain range and period, such as rent, salaries, and insurance.