For Logistics, the Customer Service Concept Suggests That Firms Should

question 84

Multiple Choice

For logistics, the customer service concept suggests that firms should

• A)automate customer service.
• B)maximize customer service levels.
• C)minimize customer service levels.
• D)minimize total logistics costs and let customer service follow.
• E)satisfy users in terms of time, dependability, communication, and convenience.

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Definitions:

Standard Costing System

An accounting method that uses estimated costs for planning and decision-making purposes.

Variable Overhead Spending Variance

The difference between the actual variable overhead costs incurred and the expected costs based on standard rates.

Standard Costing System

A cost accounting method that assigns expected costs to products, services, or cost units, used for budgeting and performance evaluation.

Direct Labour Hours

The total hours worked by employees who are directly involved in the production process, often used as a basis for allocating labor costs to products.