To Reduce Problems Associated with the Intangibility of the Services

question 56

Multiple Choice

To reduce problems associated with the intangibility of the services offered by a restaurant, the restaurant owner would be most likely to do which of the following?

• A) lower entree prices between 4 p.m. and 6 p.m.
• B) provide clean tablecloths and cloth napkins for each new customer
• C) empower employees to handle customer complaints
• D) offer a service guarantee to ensure customers that food quality will be consistent
• E) offer regular employee workshops focusing on customer service

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Definitions:

Cost Control

The process of monitoring and regulating the spending or costs within an organization.

Finished Goods Inventory

Finished goods inventory consists of products that have completed the manufacturing process and are ready to be sold to customers.

Cost Of Goods Sold

Expenses directly related to the creation of a company's sold products, encompassing both materials and labor expenses.

Cost Of Goods Manufactured

The total production cost incurred by a company to manufacture products in a specific period, including materials, labor, and overhead.