Back-Office Operations Deal Directly with the Customer

question 52

True/False

Back-office operations deal directly with the customer.

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Definitions:

Special Order

A customer request for a product or service that is not normally offered by the business, often requiring unique production or procurement efforts.

Selling Price

The amount of money charged for a product or service, or the sum of the cost plus profit.

Variable Costs

Expenses that change in proportion to the production output or sales amount.

Target Costing

A pricing strategy in which the selling price of a product is set first, and then the target cost is determined by subtracting a desired profit margin from the selling price.