Which of the Following Describes Data Envelopment Analysis (DEA)

question 24

Multiple Choice

Which of the following describes Data Envelopment Analysis (DEA) .

• A) DEA finds the most effective company among some set of companies.
• B) DEA determines if a company is converting inputs to outputs as effectively as possible.
• C) DEA determines how effective a company converts inputs to outputs compared to other companies.
• D) DEA compares how effective a company converts inputs to outputs compared to a benchmark composite of all companies.

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Definitions:

Cost of Assessment

The total expenses involved in evaluating, analyzing, or determining the value, quality, or importance of something.

Cost Management

The process of planning and controlling the budget of a business or project, focusing on reducing costs and maximizing value.

Cost Savings

The reduction in expenses achieved through efficient management, negotiation, process improvements, or other means, contributing to increased profitability.

Cost Reductions

Efforts made to lower operating expenses and production costs without compromising quality or performance.