What Is Mass Customization

question 157

Multiple Choice

What is mass customization?

• A) A box running across a Web page that is often used to contain advertisements
• B) A program that allows businesses to generate commissions or referral fees from an Internet site
• C) A technique that induces websites or users to pass on a marketing message to other websites or users
• D) The ability of an organization to give its customers the opportunity to tailor products or services to customer's specifications

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Definitions:

Variable Costs

Expenses that fluctuate with the level of output or activity, in contrast to fixed costs which remain constant.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Profit

The financial gain made in a transaction or business operation, calculated as the excess of revenue over expenses.

Unit Variable Costs

The costs associated with producing one unit of a product or service, which vary directly with the volume of production.