You Need to Let a Valued Customer Know That the Product

question 65

Multiple Choice

You need to let a valued customer know that the product he special-ordered won't be ready by tomorrow, as originally promised. In addition to relaying this news, you want to inform him of his options: to keep his original order open to be received at a later date, or to cancel it and receive a substitute item immediately. You consider calling him but then wonder whether email might not be preferable. Which of the following is NOT a potential downside to using the telephone?

• A)The customer might feel put on the spot to decide between the two options during the phone call.
• B)The customer might be unprepared to discuss his order when you call.
• C)You won't want to leave the bad news as a message if the customer is not at home.
• D)You will be able to hear the customer's tone of voice and adapt your message accordingly.
• E)You are unable to gauge your customer's reaction by making personal contact.

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Definitions:

Finished Goods Inventory

The total value of all completed products that have not yet been sold by the company.

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or the provision of services.

Cash Collections

The process of receiving and processing payments from customers or debtors.

Cash Disbursements

Financial outflows or payments made by a business, often recorded in a ledger for accounting purposes.