Which of the Following Is NOT a Benefit That an Organisation

question 67

Multiple Choice

Which of the following is NOT a benefit that an organisation may obtain from creating high levels of customer satisfaction?

• A)Positive word of mouth
• B)More affluent customers
• C)Reduced failure costs
• D)Increased levels of loyalty
• E)Lower costs for attracting new customers

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Definitions:

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs.

Dual Rate

A cost allocation method that separates costs into fixed and variable elements, applying different rates for each in costing calculations.

Single Rate

A method used in cost accounting where a single overhead rate is applied to all units produced, regardless of the department in which they were produced or the resources they consumed.

Fixed Costs

Fixed expenditures that are unaffected by production or sales volumes, encompassing rent, salaries, and insurance.