Customer-Level Activities Are Also Referred to as Customer-Sustaining Activities

question 32

True/False

Customer-level activities are also referred to as customer-sustaining activities.

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Definitions:

Short-Term Bank Loans

Borrowings from banks that are scheduled to be repaid within a year.

Reserve Inventory Storage Costs

Expenses associated with storing unsold merchandise or materials that a business holds in reserve beyond its immediate operational needs.

Shortage Cost

Costs incurred when demand exceeds supply, including opportunity costs of unmet sales and customer dissatisfaction.

Marketable Securities

Financial instruments that can be easily converted to cash without significant loss of value.