Tech a Says That the Customer Concern Is the Focus

question 26

Multiple Choice

Tech A says that the customer concern is the focus of step 1 of the diagnostic process. Often the concern is documented on the repair order prior to the technician receiving the vehicle. Tech B says the technician who works on the vehicle should take time to fully understand the concern, read the repair order, and possibly talk further with the customer to understand the nature of the problem. Who is correct?

• A) Tech A only
• B) Tech B only
• C) Both A and B
• D) Neither A nor B

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Definitions:

Direct Labor Cost

The wages or expenses directly associated with the workers who are physically involved in creating a product or providing a service.

Actual Overhead

The real costs incurred for overhead in a given period, compared against budgeted or standard overhead costs for variance analysis.

Work in Process Inventory

Goods partially completed during the manufacturing process, not yet ready for sale.

Underapplied Overhead

A situation where the allocated overhead cost is less than the actual overhead incurred, leading to a discrepancy in accounting records.