One Way That Reiko Inc

question 79

Multiple Choice

One way that Reiko Inc., a Japanese manufacturer of automobiles and motorcycles, evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Reiko is:

• A) controlling marketing activities.
• B) taking corrective action.
• C) empowering its employees.
• D) evaluating actual performance.
• E) setting performance standards.

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Definitions:

ATC

Average Total Cost; the total cost per unit of output incurred when producing goods or services.

AVC

Average Variable Cost, the cost that varies with the level of output, divided by the quantity of output produced.

Total Fixed Cost

The sum of all costs that do not change with the level of output produced; these costs are incurred even if production is zero.