Fixed Costs Are Those Costs That Do Not Change as the Level

question 26

Essay

Fixed costs are those costs that do not change as the level of activity increases or decreases.However,fixed costs may be classified as discretionary or committed.Explain the differences in these classifications and give an example of each.Discuss why managers should consider the impact of these costs in the decision making process in times of falling profits.

Understand the concept of setting service standards and its importance in service delivery.

Recognize the role of tangibles in evaluating service quality.

Identify strategies to reduce delivery gaps including technology use and employee empowerment.

Assess the importance of employee empowerment in improving service quality.

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Definitions:

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, connecting the central nervous system to limbs and organs.

Autonomic

Refers to functions of the body that occur automatically, without conscious thought, such as heart rate and digestion.

Somatic

Pertaining to the body, especially as distinct from the mind.

Interneurons

Neurons that are found exclusively within the central nervous system and act as intermediaries between sensory or motor neurons and the central nervous system.