How a Person Establishes Expectations for a Service Not Yet

question 165

Multiple Choice

How a person establishes expectations for a service not yet experienced is influenced by word-of-mouth communications, personal needs, __________, and promotional activities.

• A)how the organization delivers its service
• B)past experiences
• C)competitive trends
• D)the economy
• E)consumer income

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Definitions:

Gross Profit

The financial measure representing the difference between sales revenue and the cost of goods sold before deducting administrative and selling expenses.

CVP Analysis

Cost-Volume-Profit Analysis; a financial tool used to determine the impact on an organization's profits due to changes in volume, costs, and prices.

Fixed Cost Per Unit

The portion of fixed costs attributed to each unit of production, which stays constant regardless of the level of production or sales volume.

CVP Analysis

Cost-Volume-Profit Analysis; a management accounting tool that helps understand the relationship between costs, volume, and profit.