Which of the Following Best Describe(s) Loyal Customers

question 11

Multiple Choice

Which of the following best describe(s) loyal customers?

• A)They continue to patronise a firm over the long term
• B)Often patronise particular firms exclusively
• C)Recommend a firm and its services to friends
• D)Cost more to service than one-off customers
• E)All of the above except d

---

Definitions:

Direct Materials Cost

The expense associated with the raw materials directly used in the production of a product.

Cost Behavior Classifications

The categorization of costs based on how they change in relation to changes in a company’s level of activity or volume.

Activity Base

A measure upon which the allocation of costs is based in activity-based costing, often relating to a metric that causes costs to occur such as machine hours or labor hours.

Cost Behavior

The way in which costs change in relation to variations in an organization’s activity level.