Question

In cost efficiency analysis, whether the speeding fine revenue should be considered as a benefit?

Answer 1

Cost efficiency analysis is a procedure by which the organization can improve in its functioning to achieve the target production in the least possible time, by implementing the various internal controls such as the Idle time, material usage and pricing, and other overheads everything at its best possible outcomes.

Hence all of these is the process by which the cost-efficiency analysis include, by these the revenue of the organization increases and at the same time the internal resources of the organization are also implemented at its optimal usage. It a good achievement for any organization to run the organization at its optimal levels in all the departments.

But the only lacking is in the efficiency should always be in line with the effectiveness also

which means running an organization at an optimal level is of no use when the product had no market demand, hence the fine revenue is a benefit only when the efficiency analysis is in line with the effectiveness to archive the organization goals and be successful. Then only it is a benefit for the organization in increasing the revenue.