The simplest measure of efficiency is:
A)the amount of money the company has to work with in the short term.
B)the ratio of revenues divided by invested capital.
C)the net profit expressed as a percentage of sales.
D)the total costs of producing products.
E)the quantity of inputs that it takes to produce a given output.

Question

The simplest measure of efficiency is:
A)the amount of money the company has to work with in the short term.
B)the ratio of revenues divided by invested capital.
C)the net profit expressed as a percentage of sales.
D)the total costs of producing products. 
E)the quantity of inputs that it takes to produce a given output.

Quizplus · Accepted Answer

Efficiency is often measured by the quantity of inputs required to produce a given output, indicating how well resources are utilized.

The Simplest Measure of Efficiency Is