Which One of the Following Service Audit Questions Does NOT

question 21

Multiple Choice

Which one of the following service audit questions does NOT belong within the profit and growth component?

• A)How does the firm define customer loyalty?
• B)Does the firm set employee retention goals?
• C)Does the firm measure profits from referrals?
• D)What proportion of funds are spent on customer retention as opposed to attracting new customers?
• E)When customers do not return,do we know why?

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Definitions:

Other Expenses

Costs not directly related to the core operations of the business, such as interest payments or loss from disposal of assets.

Oil Well Service

Services related to the maintenance, operation, and management of oil wells to optimize production and extend their productive life.

Flexible Budget

An adjustable budget that is sensitive to changes in levels of activity or the amount of volume.

Service Company

A service company is a business that earns revenue by providing intangible products or services, as opposed to selling physical goods.