_____ Refers to the Difference Between the Benefits a Customer

question 306

Multiple Choice

_____ refers to the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.

• A) Operating cost
• B) Profit margin
• C) Customer value
• D) Net value
• E) Satisfaction

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Definitions:

Current Profits

The amount of net income that a company has generated during the current fiscal period, reflecting its financial performance in the short term.

Production

The process of creating, manufacturing, or assembling goods and services.

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Unit Product Cost

The total cost incurred to produce, store, and sell one unit of a product, including direct materials, labor, and overhead.