Why Do Customers Prefer to Have Continuing Relationships with Businesses

question 29

Multiple Choice

Why do customers prefer to have continuing relationships with businesses or suppliers?

• A) It helps the consumers in the process of benchmarking.
• B) By nature, customers are resistant to change and prefer pre-existing relationships with businesses.
• C) The decision-making process becomes easier with the reduction in the number of choices.
• D) Most businesses have low switching costs which make them attractive to have continued relationships with.

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Definitions:

Ending Work In Process

This signifies the inventory of goods that are still in the process of being produced at the end of an accounting period.

Conversion Costs

Costs incurred during the transformation of raw materials into finished goods, typically including labor and overhead expenses.

Process Cost Accounting

A method of accounting used in manufacturing where costs are assigned to batches or process levels, useful for mass production of similar products.

Mixing Department

A section within a manufacturing process where various materials or ingredients are combined to produce a product.