There Is a Rule of Thumb That Says It Costs

question 15

Multiple Choice

There is a rule of thumb that says it costs _____ times more to acquire a new customer compared to maintaining a loyal one.

• A) 3
• B) 6
• C) 9
• D) 12

---

Definitions:

Volume Overhead Variances

The difference between the budgeted overhead costs based on expected volume and the actual overhead costs incurred.

Controllable Variance

The difference between actual and budgeted performance that can be directly managed or controlled by responsible managers.

Actual Direct Labor Hours

The actual amount of labor time spent on producing goods, tracked to assess efficiency and productivity.

Management By Exception

A management strategy where managers intervene only when performance deviates significantly from standards, allowing them to focus on significant issues.