Pound Industries' Customer Service Department Follows Up on Customer Complaints

question 27

Multiple Choice

Pound Industries' customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 10,000 calls and incurred costs of $312,000. Of these calls, 3,800 were for the company's wholesale operation; the remainder was for the retail division. Costs allocated to the wholesale operation are:

• A) $0.
• B) $31,200.
• C) $118,560.
• D) $193,440.
• E) $203,000.

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Definitions:

Offshoring

The practice of relocating business processes or services to another country, often to take advantage of lower labor costs or favorable regulatory environments.

Cost Reduction

Strategies or measures implemented to lower expenses and improve efficiency within an organization or project.

Financial Gains

Increases in wealth or income, typically resulting from investments, business operations, or other economic activities.

Offshoring

The practice of relocating business processes or production to a foreign country to reduce costs or take advantage of favorable conditions.