Which of the Following Is an Example of a Gap

question 48

Multiple Choice

Which of the following is an example of a gap between management perception and the service-quality specifications?

• A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in, they saw peeling walls and dull lighting.
• B) A nurse visits a patient to show care, but the patient interprets this as an indication that something is very wrong.
• C) The hotel administrators think that guests want better food, but guests are more concerned with the courtesy of the waiters.
• D) A service center manager has asked his subordinates to provide fast service, but has not specified a time for the service to be performed.
• E) Customer service representatives are asked to give ample time to each customer, but must serve a minimum of 50 customers a day.

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Definitions:

Net Operating Income

The income from a company's primary business operations, excluding deductions of interest and taxes.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period of time, such as rent or salaries.

Break-Even Point

The level of production or volume of sales at which total costs and total revenue are equal, resulting in no net loss or gain.

Variable Expenses

Variable expenses fluctuate with business activity levels, such as materials and labor costs, which increase as production increases.