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Service Companies Do Not Have Fixed Costs; All Costs Incurred

question 42

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Service companies do not have fixed costs; all costs incurred by service companies are variable costs.


Definitions:

Paperwork

The written or printed documents and records that are necessary for formal or administrative purposes.

Communication Circle

A method or model of communication involving a sender, message, receiver, and feedback that ensures information is effectively relayed and understood among participants.

Feedback

The return of information about the result of a process or activity, an important component for systems regulation and learning.

Message

A piece of information or communication sent from one person to another.

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