Which of the Following Is a Guideline for Granting Claims

question 11

Multiple Choice

Which of the following is a guideline for granting claims and requests for adjustment when your company is at fault?

• A)Explain precisely how you have resolved, or plan to resolve, the situation.
• B)Specifically assign blame to someone in your organization by name.
• C)Start from the assumption that the information the customer provided is incorrect.
• D)Imply that the customer is at fault.
• E)Avoid taking or assigning personal responsibility for setting matters straight.

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Definitions:

Sales Units

The quantity of product sold, often used as a measure in assessing sales performance and operational efficiency.

Fixed Expenses

Costs that do not change with the level of production or sales over the short term, such as rent, salaries, and insurance.

Break-even Point

The break-even point is the sales level at which total revenues equal total costs, resulting in neither profit nor loss.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, showing the impact of fixed costs on earnings.