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Identify the usual changes that a company must make when it adopts a customer orientation.

Short Answer

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  • The right candidate must be chosen and selected within the organization.
  • Satisfying employees' needs.
  • A clear understanding of customer needs.
  • Social change must be accepted.

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01

Meaning of Customer Orientation

Rather than focusing on company growth and profits, the business ideology emphasizes customer demands and desires. Customer orientation is known as such a doctrine in business.

02

Identify the usual changes a company must make when adopting a customer orientation

The company must make the modifications listed below if it decides to use customer orientation as its business strategy:

1. Selecting the Best Applicant for the Job Within the Business

Rather than hiring everyone with high education and technical skills, consider hiring candidates who are primarily interested in building customer relationships and have strong problem-solving skills.

2. Putting the needs of the employees first.

There is no chance for team members to provide services that customers will be satisfied with unless they are paid sufficiently.

3. Identification of consumer needs

Understanding client needs, paying attention to their inquiries, and then addressing them will all contribute to achieving the goal of customer orientation.

4. Accepting social change

The client needs changes in line with trends, so the business should, yet many firms adhere to one product or method even though it can provide good profits.

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Most popular questions from this chapter

Identify each of the following costs as either a product cost (PROD) or a period cost (PER).

__1. Factory maintenance

__2. Sales commissions

__3. Depreciationโ€”Factory equipment

__4. Depreciationโ€”Office equipment

__5. Rent on factory building

__6. Interest expense

__7. Office manager salary

__8. Indirect materials used in making goods

Question: Listed here are the total costs associated with the 2017 production of 15,000 Blu-ray Discs (BDs) manufactured by Maxwell. The BDs sell for \(18 each.

Costs
Variable or fixed
Product or period
Variable
Fixed
Product
period





1. Plastic for BDs - \)1,500

\(1,500

\)1,500

2. Wages of assembly workers - \(30,000

3. Cost of factory rent - \)6,750

4. System staff salaries - \(15,000

5. Labelling - \)0.25 Per BD

6. Cost of office equipment rent - \(1,050

7. Upper management salaries - \)120,000

8. Annual fixed fees for cleaning service - \(4,250

9. Sales commission - \)0.50 per BD

10. Machinery depreciation, straight-line - $18,000

Required

1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.)

2. Compute the manufacturing cost per BD.

Analysis Component

3. Assume that 10,000 BDs are produced in the next year. What do you predict will be the total cost of plastic for the BDs and the per unit cost of the plastic for the BDs? Explain.

4. Assume that 10,000 BDs are produced in the next year. What do you predict will be the total cost of factory rent and the per unit cost of the factory rent? Explain.

Match each concept with its best description by entering its letter A through E in the blank.

1. Just-in-time manufacturing

A. Focuses on quality throughout the production process.

2. Continuous improvement

B. Flexible product design can be modified to accommodate customer choices.

3. Customer orientation

C. Every manager and employee constantly looks for ways to improve company operations

4. Total quality management

D. Reports on financial, social, and environmental performance.

5. Triple bottom line

E. Inventory is acquired or produced only as needed.

Question: Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify each cost as either a product (PROD) or period (PER) cost. If a product cost, identify it as direct materials (DM), direct labor (DL), or factory overhead (FO), and then as a prime (PR) or conversion (CONV) cost. (2) Classify each product cost as either a direct cost (DIR) or an indirect cost (IND) using the product as the cost object.

Cost

Direct or Indirect

Product or period

If product cost, Then:

If product cost, Then:

Direct material, Direct labor, or Factory overhead

Prime or Conversion

1. Factory utilities

2. Advertising

3. Amortization of patent on factory machine

4. State and federal income taxes

5. Office supplies used

6. Insurance on factory building

7. Wages to assembly workers

Explain why knowledge of cost behavior is useful in product performance evaluation.

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