In Data Envelopment Analysis,the Percentage of an Individual Operating Unit's

question 8

Multiple Choice

In data envelopment analysis,the percentage of an individual operating unit's resources that are available to the composite operating unit is the

• A)efficiency index.
• B)local optimum.
• C)global optimum.
• D)equilibrium point.

---

Definitions:

Break-Even Quantity

The amount of product that must be sold to cover the costs of production, resulting in neither a profit nor a loss.

Operating Cash Flow

The amount of cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Variable Cost

Costs that vary directly with the level of production or volume of output, such as materials and labor.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the company's fixed versus variable costs.