By Setting Appropriate Service Benchmarks and Measuring Service Performance, Firms

question 68

Multiple Choice

By setting appropriate service benchmarks and measuring service performance, firms can reduce the:

• A)knowledge gap.
• B)delivery gap.
• C)zone of tolerance.
• D)communication gap.
• E)standards gap.

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Definitions:

Variable Costs

refer to expenses that change in proportion to the activity of a business, such as costs for raw materials or production volume.

Fixed Costs

Costs that do not change with the level of output produced, such as rent or salaries.

AVC Curve

The Average Variable Cost (AVC) Curve is a graphical representation showing the relationship between a firm's output level and its average variable cost.

Break-Even

The point at which total costs equal total revenue, resulting in no net loss or gain for a business.