Customer Service Means Different Things to Different People in Different

question 126

Multiple Choice

Customer service means different things to different people in different retail locations. What should retailers do to improve service recovery?

• A)lower the price of their products
• B)implement liberal return policies
• C)ask the customer how they want to be treated
• D)offer customers a free product for their trouble

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Definitions:

Absorption Costing

An accounting method that incorporates all direct and indirect manufacturing costs into the cost of a product.

Net Profit

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues.

Variable Manufacturing Costs

Expenses that fluctuate with production output levels, including raw materials, direct labor, and utility costs directly involved in the manufacturing process.

Predetermined Fixed Overhead

A budgeted or estimated amount of fixed overhead costs, used to allocate overhead costs to products or services.