Trusting and Ethical Long-Term Relations with Customers May Take Years

question 23

Multiple Choice

Trusting and ethical long-term relations with customers may take years to develop.A single ethical lapse,or even the appearance of unethical behavior,will most likely:

• A) be ignored by valued customers based on the years it has taken to build the relationship.
• B) cause the relationship to deteriorate,and it may suffer irreparable harm.
• C) likely be forgiven by the customer if the product,price and delivery are still executed well.
• D) be grounds for a successful lawsuit.
• E) demonstrate to the customer that the salesperson is indeed human and an apology will suffice to restore the relationship.

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Definitions:

Fixed Factory Overhead Volume Variance

This calculates the difference between the budgeted and actual volume of production, affecting the fixed overhead costs allocated to each unit of production.

Variable Factory Overhead Controllable Variance

The difference between the actual variable overhead costs and the budgeted costs controllable by management.

Variances

Differences between planned and actual performance in budgeting or costing.

Standard Costs

Predetermined or estimated expenses that are often used to measure the performance of manufacturing departments or operations.