Cool Looks, Inc

question 18

Multiple Choice

Cool Looks, Inc. is a local fashion design company that actively solicits comments from its customers about the quality of its clothing and the kind of merchandise they want it to supply. Which of the following mechanisms for focusing on the customer is Cool Looks utilizing?

• A) Managing materials
• B) Improving response time
• C) Demonstrating leadership
• D) Shaping employee attitudes
• E) Knowing customer needs

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Definitions:

Variable Costs

Costs that change in proportion to the level of production activity or volume, such as materials and labor directly involved in production.

Fixed Costs

Expenses that remain constant regardless of production or sales volume in the short term, like lease payments or wages.

Relevant Range

The range of activity within which the assumptions about cost behavior hold true for a specific operation or business.

Merchandising Company

A company that purchases goods in a finished state for the purpose of reselling them without further manufacturing.