Giving Service-Contact Employees the Discretion to Make Day-To-Day Decisions on Job-Related

question 58

True/False

Giving service-contact employees the discretion to make day-to-day decisions on job-related activities is instrumental in creating a customer-responsive culture.

---

Definitions:

Direct Labor

Costs attributed to the workers directly involved in the production of goods or services.

Salespeople Commissions

The payment made to sales staff, usually calculated as a percentage of the sales they generate.

Activity-Based Costing

Activity-based costing is an accounting method that assigns costs to products and services based on the resources they consume, aiming for more accurate cost information.

Overhead Rate

A measure used to allocate indirect costs to produced goods or services, calculated as overhead costs divided by the allocation base.