The Service Profit Chain Is the Service Sequence from Employees

question 28

Multiple Choice

The service profit chain is the service sequence from employees to customers to profit. According to this concept, the company's strategy and service delivery system determines ________.

• A) the skill development of employees
• B) how the firm performs in the short run
• C) the employee satisfaction in the company
• D) how employees serve customers

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Definitions:

Rate Variance

The difference between the actual rate paid for something and the standard or expected rate, often analyzed in budgeting and cost management.

Total Cost Variance

measures the difference between the actual cost of producing something and its standard cost, highlighting efficiency and budgeting issues.

Variable Factory Overhead

Costs in manufacturing that fluctuate with the level of production, such as utilities or materials.

Direct Materials

Raw materials that are directly incorporated into a finished product and can easily be traced to the product.