In the Customer Acquisition Phase of the Customer Life Cycle

question 50

True/False

In the customer acquisition phase of the customer life cycle, an organization categorizes its customers according to value and attempts to win back high-value customers.

---

Definitions:

Factory Overhead

Factory overhead refers to the indirect manufacturing costs not directly tied to the production of goods, such as utilities or management salaries.

Machine Hours

The total operating time of a machine, used as a basis for allocating manufacturing overhead.

Conversion Costs

Costs incurred to convert raw materials into finished products, generally including direct labor and manufacturing overhead.

Materials Cost

The cost of raw materials and components used to create a product.