Gap 1 Shows That There Can Be a Difference Between

question 14

True/False

Gap 1 shows that there can be a difference between actual customer expectations and management's idea or perception of customer expectations.

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Definitions:

Materials Handling

Activities involved in moving, storing, controlling, and protecting materials and products throughout the manufacturing, warehousing, distribution, consumption, and disposal processes.

Allocation Rate

A financial metric used to assign indirect costs to different projects or departments within an organization.

Total Overhead

The total of all indirect costs associated with the manufacturing process, including indirect labor, materials, and other expenses necessary for production.

Overhead Allocation

The process of distributing overhead costs to produced goods based on a predetermined method, often reflecting the usage of resources in production.