Which of the Following Is an Example of a Nonfinancial

question 19

Multiple Choice

Which of the following is an example of a nonfinancial measure for customer satisfaction?

• A) average manufacturing time for key products
• B) contribution margin earned on popular products
• C) on time delivery rates
• D) time and effort spent on machine repairs

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Definitions:

Product Cost

The total amount of costs directly and indirectly involved in manufacturing a product or delivering a service.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Super-Variable Costing

A costing method that classifies all direct labor and manufacturing overhead costs as fixed period costs and only direct materials as a variable product cost.

Variable Costing

An accounting method that only assigns variable costs to inventory, treating fixed costs as period expenses.