The Workload Approach Takes into Account All of the Following

question 25

Multiple Choice

The workload approach takes into account all of the following EXCEPT ________.

• A) customer account status
• B) amount of effort required to maintain the account
• C) customer account size
• D) number of times each class of account is to be contacted
• E) success rate at closing orders with account

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Definitions:

Law of Diminishing Returns

The principle that as investment in a single factor of production increases, holding all others constant, the incremental gains in output will eventually decrease.

Law of Diminishing Marginal Utility

states that as a person consumes more of a good or service, the utility (satisfaction) gained from each additional unit decreases.

Principal-agent Problem

A dilemma occurring when one person or entity (the agent), is able to make decisions on behalf of, or that impact, another person or entity: the principal.

Complementary Resource

A good or service that enhances the use or value of another good or service when the two are used together.