In Its Service Profit Chain, Arbol Advocates That Superior Customer

question 13

Multiple Choice

In its Service Profit Chain, Arbol advocates that superior customer value is delivered by

• A) a well-trained sales force.
• B) satisfied employees.
• C) the marketing function.
• D) a well-designed product.
• E) after-sales service.

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Definitions:

Factory Overhead

All the supplementary costs tied to manufacturing, aside from the expenses of direct materials and direct labor.

Amortization

The periodic transfer of the cost of an intangible asset to expense.

Direct Labor Used

The total hours worked by employees directly involved in the production process, impacting manufacturing costs.

Prime Costs

The combined costs of direct materials and direct labor involved in manufacturing a product.