Identify a True Statement About the GAP Model

question 23

Multiple Choice

Identify a true statement about the GAP model.

• A) It defines quality system standards based on the premise that certain generic characteristics of management practices can be standardized.
• B) Minimizing gaps 4 and 5 will result in low customer satisfaction.
• C) Failure to understand and minimize gaps presents the risk of losing customer loyalty.
• D) It eliminates causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers.

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Definitions:

Amortized Cost

The initial measurement of a financial asset or liability, adjusted for repayments of principal, accumulation of interest, and any loss in value.

Interest Income

Interest income is the revenue earned from deposit accounts or investments through the lending of money or the use of capital.

Bond Premium

The amount by which the market price of a bond exceeds its principal amount or face value.