Which of the Following Statements Is True About Service Failures

question 92

Multiple Choice

Which of the following statements is true about service failures?

• A)Service failures occur when an organization's service performance fails to meet the customer's expectations.
• B)Service failures will not occur when organizations take the best efforts to prevent them.
• C)Service failures occur due to hardware breakdown.
• D)Service failures will not recover quickly if the customer has a close relationship with the company.

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Definitions:

Fixed Capital

Long-term assets used in the production of goods and services, such as buildings, machinery, and equipment.

Variable Labor

Labour costs that vary directly with the level of production or output in a business.

Average Variable Cost

The cost per unit of output that varies with the level of production, excluding fixed costs.

Average Total Cost

The sum of average variable costs and average fixed costs (costs that do not change with the level of output) divided by the quantity of output, representing the total cost per unit of output.