You Have Been Asked to Develop a Customer-Performance Scorecard for Your

question 42

Essay

You have been asked to develop a customer-performance scorecard for your company's toy division.List three measures you might include.

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Definitions:

Diminishing Marginal Product

The principle that as more of a variable input is added to a fixed input, the additional output gained from each new unit of input will eventually decrease.

Marginal Costs

The extra expense associated with manufacturing an additional unit of a product or service.

Marginal Returns

Marginal Returns refer to the additional output or benefit received from increasing one unit of a particular input while keeping other inputs constant.

Marginal Cost

The incremental cost associated with the production of an extra unit of a product or service.