Acme is analyzing the efficiency of their Procure-to-Pay process (from PO Requisition to Payment to Suppliers). The VP has learned that their biggest competitor is averaging a processing cost of $70 per purchase order, The VP's analysis has revealed the following:

Acme processes 2000 Purchase Orders per year. Of these, 10% (200) are delayed and have to be revised owing to discrepancies in quality and quantity.

Each order is processed by a Procurement clerk, then approved by a Procurement manager, checked by a Finance clerk and then approved by a Finance manager.

Processing the orders through the process takes approximately the following times from each level of personnel:

	Procurement Clerk	Procurement Approval	Finance Clerk	Finance approval
Each Standard order	0.5 hours	10 minutes	1 hour	10 minutes
Each Revised Order	1.5 hours	20 minutes	1 hour	10 minutes

The total compensation paid annually (for 2000 hours of work) in Purchasing and Finance is as follows:

	Procurement Clerk	Procurement Approval	Finance Clerk	Finance approval
Total Compensation	$70,000	$140,000	$80,000	$140,000

Is Acme's average cost of processing a Purchase Order A.Better than (less) their major competitor's cost

B.Worse than (greater) their major competitor's cost