A Customer Has Placed an Order with Cyborg Computers for a Custom-Made

question 72

Multiple Choice

A customer has placed an order with Cyborg Computers for a custom-made computer. However, as a result of a system error, the order was lost. It took the sales representative three days to locate the order again. Once the order was located, the sales representative sent the order to the production department. This error is likely to negatively affect which of the following?

• A) Production lead time and delivery time
• B) Customer response time and order receipt time
• C) Customer response time and delivery time
• D) Order receipt time and delivery time

---

Definitions:

EPS

Earnings Per Share represents the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Breakeven Volume

The number of units that must be sold at a given price to cover all costs, with no profit or loss.

Variable Costs

Costs that change in proportion to the level of output or activity in a business.

Fixed Costs

Rent, salaries, and insurance charges are examples of expenses that are unaffected by changes in production or sales volumes.