In the Gaps Model of Service Quality, Which of the Following

question 16

Multiple Choice

In the gaps model of service quality, which of the following best describes GAP 1?

• A)Not knowing what customers expect
• B)Service performance that does not match specifications
• C)Specifying service standards that do not accurately reflect what management believes to be customers' expectations
• D)Discrepancies between expected service and actual service delivery
• E)Service not living up to levels of performance that are promoted and promised by the advertising of the company

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Definitions:

Under/Overapplied Overhead

This term identifies the discrepancy between the estimated overhead costs allocated to products or services and the actual overhead costs incurred.

Standard Cost

The estimated or predetermined cost of manufacturing a single unit of product or performing a service, used for budgetary and performance evaluation purposes.

Fixed Overhead Volume Variance

A financial metric that measures the difference between the budgeted and actual fixed overhead costs, influenced by changes in production volume.

Productive Capacity

The maximum output that a business can produce in a given period under normal conditions, considering its resources.