Joe Girard's "Ferris Wheel" Concept Assumes Which of the Following

question 5

Multiple Choice

Joe Girard's "Ferris Wheel" concept assumes which of the following?

• A) The optimal ratio of customers to prospects is 66 percent.
• B) If the customers are sold the correct product and given good service, a company will not lose customers.
• C) A certain number of customers will be lost every year by most companies.
• D) Departing customers must be replaced by new customers at an equal rate.
• E) Salespeople will do better prospecting when they think of the process as a roller coaster.

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Definitions:

Raw Materials Inventory

The stock of unprocessed materials used in the manufacturing process.

Factory Labor

Workforce involved in producing goods within a factory setting, often comprising a significant portion of production costs.

Manufacturing Overhead Applied

The charging of manufacturing overhead costs to units produced, usually based on a predetermined overhead rate, including costs not directly tied to production like rent and utilities.

Overapplied Overhead

Occurs when the allocated or applied overhead for a product exceeds the actual overhead expenses incurred.