Which of the Following Statements About Customer Involvement Is Best

question 108

Multiple Choice

Which of the following statements about customer involvement is best?

• A) In service industries, customer contact is of minor importance.
• B) High task divergence and flexible process flows require more flexibility of the process's employees, facilities and equipment.
• C) A firm that produces standardized products often seeks customer specifications.
• D) When customer involvement is highly customized, a process is more likely to use a standardized-services process rather than a customized-services process.

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Definitions:

Overapplied

A situation where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead costs incurred, resulting in an apparent surplus.

Underapplied

A situation where the allocated manufacturing overhead is less than the actual overhead incurred.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products, calculated before the accounting period begins based on expected costs and activity levels.

Total Costs Added

The total amount of direct materials, direct labor, and overhead costs incurred during a specific period for the goods produced.