When a Firm Is Trying to Match Customer Expectations with Actual

question 83

Multiple Choice

When a firm is trying to match customer expectations with actual service through research, it is attempting to reduce the:

• A)knowledge gap.
• B)standards gap.
• C)delivery gap.
• D)communication gap.
• E)time gap.

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Definitions:

Variable Costs

Costs that fluctuate in direct proportion to changes in production or sales volume, such as raw materials and labor.

CVP Income Statement

A financial document that applies Cost-Volume-Profit analysis to delineate how changes in cost and volume affect a company's operating income and net income.

Variable Expenses

Costs that change in proportion to the activity of a business.

Break-Even Point

The point at which total revenues equal total costs, indicating no net loss or gain, and where a business starts to generate profit with any additional sales.