Hero Ltd.’s target is to produce 20,000 shirts per month at a cost of ₹ 150 per shirt. The production manager could achieve this target at a cost of ₹ 170 per shirt

Question: Hero Ltd.’s target is to produce 20,000 shirts per month at a cost of ₹ 150 per shirt. The production manager could achieve this target at a cost of ₹ 170 per shirt. Do you think the Production manager is ‘efficient’? Give a reason in support of your answer. [CBSE 2010]

Answer: No, the production manager is not ‘efficient’ because he had achieved the target but not in a cost-effective manner.


Question: Hero Ltd.’s target is to produce 20,000 shirts per month at a cost of ₹ 150 per shirt. The production manager could achieve this target at a cost of ₹ 170 per shirt. Do you think the Production manager is ‘efficient’? Give a reason in support of your answer. [CBSE 2010]


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