Which of the Following Is an Example of Being an Efficient

question 66

Multiple Choice

Which of the following is an example of being an efficient organization or employee?

• A)operating a hospital at the lowest possible cost while achieving higher output
• B)being the highest in sales as a real estate broker in Toronto
• C)a telemarketer who makes the expected and required number of calls at the end of the day
• D)an instructor who teaches larger classes than colleagues
• E)a business owner who expands her operation to more than the average number of locations for her industry

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Definitions:

Mixed Cost

Expenses that have both fixed and variable components, changing with the level of activity but not directly proportional.

Variable Costs

are expenses that change in proportion to the activity of a business, such as the cost of raw materials used in production.

Differential Costs

The difference in total cost that will result from selecting one alternative over another.

Fixed Costs

Fixed costs include payments like rent, salaries, and insurance that are unaffected by variations in production or sales volumes.