The Design of Service Processes Is Challenging Because It Involves

question 60

Multiple Choice

The design of service processes is challenging because it involves a trade-off between ______.

• A)customer expectations and product price
• B)service provider expectations for profits and costs
• C)customers' expectations and service providers' desire for efficiency
• D)product price and delivery time

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Definitions:

Direct Materials

Raw materials that are directly incorporated into a finished product and can be easily traced to it.

Discretionary Fixed Costs

Discretionary fixed costs refer to fixed costs that can be altered in the short term by current managerial decisions, such as advertising or research and development expenses.

Management Decisions

These are choices made by the executives of a company affecting its direction and operation.

Planning Horizon

The future time period over which plans are made and resources are allocated.