Both Core Components and the Peripheral, Value-Added Supplemental Components Contribute

question 38

True/False

Both core components and the peripheral, value-added supplemental components contribute to customer satisfaction and dissatisfaction.

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Definitions:

Variable Costs

Expenses that fluctuate with the level of production or sales volume, such as raw materials and direct labor.

Direct Costs

Expenses that can be directly traced to the production of a specific good or service, such as raw materials and direct labor.

Cost Object

Anything for which a separate measurement of costs is desired, such as products, services, or projects.

Economically Traced

The assignment of costs to a specific product or service based on the direct relationship between the cost and the object.