A Customer Has Reported a Problem to Your Company

question 94

Multiple Choice

A customer has reported a problem to your company. Which of the following statements is NOT true?

• A)You should explain the reason behind the problem.
• B)You should tell the customer how you will prevent this problem from reoccurring.
• C)A good explanation of the problem can win consumer confidence.
• D)An explanation that sounds like an excuse will result in a negative reaction.
• E)It is necessary to apologize to the customer for the problem.

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Definitions:

Return on Investment

A measure of the profitability of an investment, calculated by dividing the net profit by the initial cost of the investment.

Controllable Direct Fixed Costs

Expenses that do not vary with production volume and can be altered or influenced by management in the short term.

Noncontrollable Direct Fixed Costs

Fixed costs that cannot be altered or influenced by the decisions of management in the short term.

Indirect Fixed Costs

Costs that are incurred for the benefit of more than one profit center.