In Which Type of System Must the Customer Be Actively

question 4

Multiple Choice

In which type of system must the customer be actively involved in order to receive the good or service?

• A) Make-to-stock
• B) High-contact
• C) Intangible
• D) Low contact
• E) Operations process

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Definitions:

Service Revenue

Income earned by a company for the services it provides, rather than for selling physical goods.

Controllable Margin

The portion of profit or income that a manager has direct control over, often excluding fixed costs and expenses.

Profit Center

A part of an organization that is directly responsible for generating its own revenue and profit.

Responsibility Report

A managerial accounting tool that collects financial information to assess the performance of various segments of a business.