Customer Contact, for the Purpose of Classifying a System as Being

question 74

Multiple Choice

Customer contact, for the purpose of classifying a system as being high-contact or low-contact, is measured by

• A)the percentage of a service provider's workday spent with customers
• B)the percentage of time the customer must be in the system relative to the total time it takes to provide the service
• C)the number of service encounters occurring in a given span of time
• D)the number of different service providers required to serve one customer

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Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, representing the average cost per unit of output.

Average Variable Cost

The cost of labor, material, or overhead that changes in direct proportion to the level of production or output.

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Fixed Cost

A fixed cost is a business expense that remains constant regardless of the volume of goods or services produced by an entity.