Allocative Efficiency Can Be Defined as

question 158

Multiple Choice

Allocative efficiency can be defined as

• A)all non-value activities performed with minimal quantities needed to produce the given outputs.
• B)elimination of all non-value-added activities.
• C)input prices determining the relative proportions of each input that should be used.
• D)input prices determining the relative proportions of each output that should be produced.

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Definitions:

Nonoperating Activities

Various revenues, expenses, gains, and losses that are unrelated to a company’s main line of operations.

Statement of Cash Flows

A financial report that details the sources and uses of a company's cash during a specific period, showing operations, investing, and financing activities.

Cash Receipts

The money received by a business during a specific period, including amounts received from customers, interest, and dividends.

Statement of Cash Flows

A financial statement detailing the impact of alterations in balance sheet accounts and income on cash and cash equivalents, divided into operating, investing, and financing activities.