Which of the Following Statements About Operations Management in the Service

question 228

Multiple Choice

Which of the following statements about operations management in the service sector is most accurate? Operations management in the service sector:

• A) is all about providing the service at the lowest cost.
• B) should focus on providing customers with a good experience.
• C) has less flexibility than operations management in the manufacturing sector, because services are not technology driven.
• D) has done a good job of increasing output, but a poor job of improving quality.

Understand and calculate the degree of operating leverage and its impact on net operating income.

Apply cost-volume-profit (CVP) analysis in mixed cost settings and understand the effect of sales mix changes on break-even points.

Interpret and apply the cost formula equation in the context of business decision-making.

Estimate fixed and variable components of mixed costs using the high-low method.

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Definitions:

Generalists

Individuals or entities that have a wide array of skills or knowledge, not limited to a specific area of expertise.

Social Psychology

The scientific study of how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

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To establish a connection or association between two or more things, often used to describe how individuals connect or interact with one another.