American Express Implements a Program of Calling Its Current Cardholders

question 105

Multiple Choice

American Express implements a program of calling its current cardholders to find out what changes they would like to see in the services provided.The firm is exhibiting characteristics associated with which of the following orientations?

• A) Production
• B) Sales
• C) Market
• D) Social
• E) Development

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Definitions:

Work in Process

A term referring to items and materials that are being transformed into finished products but are not yet complete.

Variable Overhead

Variable overhead costs are those expenses that fluctuate with production volume, such as utilities or materials.

Fixed Overhead

Regular, unchanged costs associated with operating a business that do not fluctuate with production levels.

Direct Labor Rate Variances

This term refers to the difference between the actual cost of direct labor and the expected (or standard) cost, used in manufacturing and budgeting.