The Measurement of the Number of Customers Who Stop Using

question 70

Multiple Choice

The measurement of the number of customers who stop using or purchasing products or services from a company is called:

• A)switching costs.
• B)churn rate.
• C)CLTV.
• D)switch rate.
• E)turnover percentage.

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Definitions:

Total Factory Overhead Cost

Total factory overhead cost includes all indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of non-direct labor, that are not directly tied to the production of specific goods.

Direct Labor

The labor costs associated with workers who are directly involved in the production of goods or services.

Indirect Labor

The wages paid to employees who are not directly involved in the production of goods, such as supervisors and maintenance workers.

Product Cost

The total expense incurred in creating a product, including raw materials, labor, and overhead costs.