By Setting Appropriate Service Benchmarks and Measuring Service Performance, Firms

question 68

Multiple Choice

By setting appropriate service benchmarks and measuring service performance, firms can reduce the:

• A)knowledge gap.
• B)delivery gap.
• C)zone of tolerance.
• D)communication gap.
• E)standards gap.

---

Definitions:

Fixed Cost

Fixed costs are unaffected by the volume of production or sales, covering expenditures like rental fees, salaries, and insurance charges.

Assembly Department

A section or division within a manufacturing facility where various components are assembled into final products, playing a crucial role in the production process.

Service Costs

Service costs entail the expenses associated with providing services, including labor, materials, and overhead.

Margin

The difference between the selling price of a product and the cost of goods sold, often expressed as a percentage of the selling price.