One Key Assumption in the Service Business Is That Success

question 3

Multiple Choice

One key assumption in the service business is that success depends on how well employees deliver their services to customers. However,which of the following does the service-profit chain assume success depends on?

• A)the availability of factors of production  
• B)autocratic management  
• C)a high degree of centralization  
• D)the way employees are treated

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Definitions:

Budgeted Rate

A predetermined rate, often used for allocating costs or resources in a budget based on estimated expenditures.

Actual Activity

The real, measured amount of work performed or the level of production achieved over a specified period of time.

Customer Service Department

A division within a company that handles inquiries, resolves issues, and maintains relationships with customers.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.