Describe the Service Profit Chain Framework That Arbol Industries Adopted

question 65

Essay

Describe the Service Profit Chain framework that Arbol Industries adopted to satisfy and keep customers.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered a part of the product’s cost.

Direct Labor

The labor costs directly associated with the production of goods, including wages for workers who are involved in the actual manufacturing process.

Allocation Base

A measure or statistic used to distribute indirect costs to different cost objects, such as departments or products.

Budgeted Overhead

The estimated amount of all indirect costs associated with the production process or project.