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The selling and administrative expense budget of Fenley Corporation is based on the number of units sold, which are budgeted to be 2,500 units in January. The variable selling and administrative expense is $4.40 per unit. The budgeted fixed selling and administrative expense is $35,750 per month, which includes depreciation of $4,000. The remainder of the fixed selling and administrative expense represents current cash flows.
Required:
Prepare the selling and administrative expense budget for January.
1) The main goal in businesses is to
A) Stay “in the black.”
B) Increase the number of customers.
C) Create partnerships with customers.
D) Increase market shar
e.
2) A business will lose 10-
30
% of its customers in what time frame?
A) Every ten years
B) Over its lifetime
C) Every year
D) Every four years
3) Businesses that institute effective customer retention programs may see profits increase by how much?
A) 10-20%
B) 15-30%
C) 20-40%
D) 25-100%
4) In the example in the text, a dissatisfied customer at Happy Jack’s store could cost the store how much in revenues and other lost customers over a ten-year period?
A) $442,000 and 17 other lost customers
B) $86,000 and 15 other lost customers
C) $198,000 and 128 other lost customers
D) $43,000 and 12 other lost customers
5) One of the main principles behind globalization and expansion across cultural and geographic boundaries is
A) You cannot build relationships with people you don’t understand.
B) Value and service are the same in any language.
C) Language barriers are not as important as value barriers.
D) All of the above
6) Among the issues of dealing with the “baby boomer” generation is the consideration
A) That their values are different from their parents’ values.
B) That their buying habits are different from today’s youth.
C) That they buy the same items we all buy.
D) That they behave differently from their parents’ generation.
Unit 1 Examination
30
MKT 121 – Customer Service
7) Giving the least effort and service that we can get away with results in
A) A feeling of superiority.
B) More fun in the workplace.
C) A better bottom line.
D) Mind-numbing work.
8) Customer loyalty is NOT
A) A large share of the market.
B) Repeat buying alone.
C) Customer satisfaction alone.
D) All of the above
9) The NPS is defined as
A) A number that correlates to how expensive your customers are.
B) The best way to grow is to covert more customers into promoters and fewer into
detractors.
C) A score based on the number of people who do not frequent your business.
D) None of the above
10) Customer loyalty is
A) A reflections on the overall customer service of a business.
B) Driven by overall satisfaction.
C) A measure of how satisfied a customer is.
D) All of the above
11) To create long-term customer loyalty, customers must be satisfied and
A) Engaged.
B) Willing to recommend.
C) Committed.
D) None of the above
12) Behavior is
A) What people do.
B) The non-verbal portion of communication.
C) The characteristics that define people.
D) All of the above
Unit 1 Examination
31
MKT 121 – Customer Service
13) Former New York Mayor Ed Koch was famous for asking
A) Why’d you come?
B) How’m I doing?
C) Whaddya think?
D) Where ya’ been?
14) A smile originates in
A) The eyes and the mouth.
B) The brain and the mouth.
C) The brain and the eyes.
D) The eyes and the cheeks.
15) To let a caller know when the call is over
A) Tell him/her “Thank you for calling.”
B) Tell him/her “If you’re about done…”
C) Ask him/her ‘”Well, is there anything else today?”
D) None of the above
16) When it comes to customer interaction,
A) Getting the customer to approach the product in the right frame of mind is the key.
B) Employees should always wait for customers initiate interaction as they become comfortable.
C) It doesn’t matter what customers do, so long as they begin to do something.
D) Customers who are intending only to waste time in your business should be held at
a distanc
e.
17) Excellent organizations are
A) Staffed by people who project utmost professionalism.
B) Ordered by people who place a high emphasis on demeanor.
C) Fun places to work.
D) Led by people who have the customer’s best interest at heart.
18) A relationship with a customer that doesn’t go beyond the current transaction is
A) Called a love ‘em and leave ‘em relationship.
B) Conductive to the customer feeling no incentive to return..
C) Not good business.
D) All of the above
Unit 1 Examination
32
MKT 121 – Customer Service
19) A company’s culture is made up of
A) Whatever the board of directors says it is.
B) The company’s vision and mission statement.
C) Its behavior patterns.
D) The image the CEO wants to project.
20) One example of an internal factor that complicates the listening process is
A) A noisy air conditioner in the room during a conversation.
B) Getting distracted by a television program during a conversation.
C) Conversing with someone who speaks too quickly.
D) Overhearing an unknown foreign language.
21) One example of how the presence of noise complicates the listening process is
A) A noisy air conditioner in the room during a conversation.
B) Conversing with someone who speaks too quickly.
C) Overhearing an unknown foreign language.
D) Getting distracted by a television program during a conversation.
22) In any conversation, much of what we communicate is
A) Unrehearsed thoughts.
B) Feelings, impressions, and emotions.
C) Facts.
D) Unformed opinions.
23) Listening is the only communication skill that is
A) Not natural.
B) Really important.
C) Not formally taught.
D) Easily acquired.
24) When it comes to listening versus speaking,
A) We listen far more than we speak.
B) We speak more than we listen.
C) People are capable of listening faster than others can talk.
D) There is no correlation.
Unit 1 Examination
33
MKT 121 – Customer Service
25) Self-protection means that we
A) Make sure we don’t say something stupid.
B) Anticipate what we expect to hear.
C) Plan responses to protect ourselves.
D) All of the above
