After Determining That Responsiveness Was a Major Concern of Customers,American

question 47

Multiple Choice

After determining that responsiveness was a major concern of customers,American Express conducted additional research to establish the exact number of days customers defined as responsive for the various company processes (e.g.,2 days for reissuing lost cards and 15 days for deciding on an application) .By conducting additional research,American Express was addressing which of the following steps in the process for developing customer-defined standards?

• A) Developing feedback mechanisms for measurement of standards
• B) Identifying existing or desired service encounter sequences
• C) Establishing measures and target levels for standards
• D) Deciding whether hard or soft standards are appropriate
• E) Translating customer expectations into behaviors and actions for each service

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Definitions:

Variable Costing

An accounting method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, excluding fixed overhead.

Net Operating Income

A financial metric that calculates how much profit a business generates from its regular operational activities, excluding non-operating income and expenses.

Operating Loss

A financial situation indicating a company's expenses have surpassed its revenue from operations, resulting in a negative operating income.

Absorption Costing

A costing approach that incorporates all costs related to manufacturing, including both fixed and variable costs, into the price of a product.