Operational Efficiency Is

question 31

Multiple Choice

Operational efficiency is:

• A) driving the business strategy
• B) ensuring the right tasks are performed
• C) decreasing the firm's input requirements
• D) increasing the firm's output
• E) performing operations tasks well

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Definitions:

Fixed Costs

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

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading its cost over its useful life.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in the product cost.

Electricity

A form of energy resulting from the existence of charged particles, used as a power source.