How Well the Design of a Product or Service Meets

question 32

Multiple Choice

How well the design of a product or service meets and exceeds the needs and expectations of the customer is called:

• A)Process capability.
• B)Quality of conformance.
• C)Quality of performance.
• D)Quality of design.
• E)Process control.

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Definitions:

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Operating Leverage Factor

A measure indicating how a company's fixed costs relate to its variable costs, impacting profitability as sales levels change.

Contribution Margin

The contribution margin is the amount by which the sales revenue of a product or service exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.

Selling Price

The amount of money customers pay for a product or service.