The Degree of Customer Contact Measures

question 17

Multiple Choice

The degree of customer contact measures:

• A)The amount of time the customer is separated from the service delivery system
• B)The amount of time the customer is in the service delivery system while the service is being produced
• C)The customization abilities of the service system
• D)None of the above

---

Definitions:

AVC (Average Variable Cost)

The cost of labor, materials, and other variable expenses divided by the quantity of output produced, excluding fixed costs.

AFC (Average Fixed Cost)

The fixed costs (expenses that do not change with the level of production) divided by the quantity of goods or services produced, typically decreasing as production increases.

Marginal Cost

The cost increase that comes with producing an additional unit of a product or service.

Marginal Revenue

The heightened income realized from the sale of one more unit of a good or service.