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Which of the Following Metrics Is Most Likely Used in Evaluating

question 1

Multiple Choice

Which of the following metrics is most likely used in evaluating an outsourced call centre but not a manufacturing process?


Definitions:

Economic Profits

The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used.

Fixed Costs

Costs that do not change with the level of output produced by a firm, such as rent and salaries.

Variable Costs

Expenses that change in proportion to the production output or sales volume of a company.

AVC

Average Variable Cost, calculated by dividing the total variable costs by the quantity of output produced.

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