In a Purely Customer-Focused Environment,service Measurement Is Typically in Terms

question 21

Multiple Choice

In a purely customer-focused environment,service measurement is typically in terms of the:

• A) employee turnover.
• B) number of products manufactured.
• C) potential sales.
• D) number of customer complaints.

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Definitions:

Variable Costing

An accounting method that only allocates variable costs to the inventory; fixed manufacturing overhead is expensed as incurred.

Cost Structure

The composition of a company's costs, both fixed and variable, that are incurred in the operation of its business.

Variable Costing

An accounting method that only considers variable costs - costs that change with production volume - in calculating the cost of goods sold.

Direct Materials Costs

The expenses for raw materials that are directly used in the manufacturing of a product.