Service companies do not have product costs, so they often consider all operating expenses as part of their cost of service

Indicate whether the statement is true or false


TRUE

Business

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Retailer promotions are ineffective in getting customers to increase their purchase quantities

Indicate whether the statement is true or false

Business

A total asset turnover ratio of 3.5 indicates that:

A. For every $1 in assets, the firm paid $3.50 in expenses during the period. B. For every $1 in assets, the firm earned gross profit of $3.50 during the period. C. For every $1 in sales, the firm acquired $3.50 in assets during the period. D. For every $1 in assets, the firm produced $3.50 in net sales during the period. E. For every $1 in assets, the firm earned $3.50 in net income.

Business

Briefly describe how sales tax payments flow from customers to government entities.

What will be an ideal response?

Business

When customers complained that employees at Freddy's Fast Stop Stores were unfriendly, Freddy's instituted its Smiling Service program, which required all employees to greet and make eye contact with every customer they see within 5 seconds and always smile and offer help whenever the customer appeared to need any. Employees were counseled, sent to training courses and terminated if they failed to follow these instructions. What mistake did Freddy's make when it instituted this program?

A. It chose a soft standard without seeing if a hard standard was more appropriate B. It did not want to use audits or operating data to see how well the new program was being implemented C. It chose a hard standard without seeing if a soft standard would be more appropriate D. It did not establish a means of measuring performance against standards E. It selected behavior/actions for service standards instead of attributes

Business