DEA circumvents the need to develop standard costs for each service when comparing the efficiency of multiple service units that provide similar services.

Question

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DEA (Data Envelopment Analysis) is a nonparametric method used to measure the effectiveness and efficiency of multiple service units that provide similar services without requiring specific cost data for each service. Therefore, DEA circumvents the need to develop standard costs for each service when comparing their efficiency.

DEA Circumvents the Need to Develop Standard Costs for Each