Which of the Following Is a Problem That Managers Face

question 41

Multiple Choice

Which of the following is a problem that managers face while providing high quality,quick service,and after-sales service and support,products with many features,and products that are customized?

• A) Job satisfaction decreases, thus affecting productivity.
• B) It raises costs and thus the price that must be charged to cover costs.
• C) Defect rates could increase thus lowering customer satisfaction.
• D) It loses other customers who do not desire these features.
• E) These features are easily duplicated and thus they lose the competitive edge.

Determine the cost allocation of lump-sum purchases.

Account for costs subsequent to acquisition including capital improvements and repairs.

Identify and apply the principles of capitalization of interest costs.

Recognize the accounting treatment for the disposal and exchange of property, plant, and equipment.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Account Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Reportable Segments

These are operational segments of a business that have distinct financial data available, and whose results are regularly reviewed by the entity’s chief operating decision maker.

Profits Test

A criterion used to evaluate the profitability of a business or investment, often assessing whether revenues exceed costs or expenses to determine financial viability.