Customer Costs Include Anything the Buyer Must Give Up in Order

question 178

Multiple Choice

Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is

• A) risk.
• B) time.
• C) monetary price.
• D) effort.
• E) availability.

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Definitions:

Performance Effectiveness

The degree to which an individual or organization achieves their goals and objectives, typically evaluated through various performance metrics.

Production Targets

These are specific goals set for the amount of products manufactured or services delivered in a certain period of time.

Cost Overrun

Occurs when the actual cost of a project exceeds the originally budgeted or estimated cost.

Irish Shamrock Model

A conceptual framework proposed by Charles Handy that describes an organization structure divided into three parts: core staff, contractual fringe, and flexible labor force.