Question

The ABC Accountants do not standardize their service to customers because each customer has different needs. This is an example of _______ production.

a. continuous
b. intermittent
c. custom
d. job-order

Answer 1

The ABC Accountants tailor their services to meet each customer's unique needs, which is an example of custom production.

Step-by-step explanation:

The ABC Accountants do not standardize their service to customers because each customer has different needs. This is an example of custom production. Among the options provided, custom production is characterized by providing tailored services or products to meet specific customer requirements. Hence, for a service like accounting where the needs can be highly individualized, a custom approach is typically used rather than a standardized one.

The decision by ABC Accountants not to standardize their services and instead tailor them to each customer's unique needs is a clear example of custom production. Custom production involves providing personalized and individualized services or products to meet the specific requirements of each customer. In the context of accounting services, where clients often have diverse financial situations, objectives, and preferences, a custom approach is practical. This allows ABC Accountants to address the distinctive needs of each customer, offering tailored solutions and enhancing client satisfaction. Custom production aligns with the principle of flexibility and responsiveness to customer variations, ensuring that the services provided meet the specific demands of each client in a way that standardized approaches might not achieve.

Answer 2

The correct answer is c. ABC Accountants' approach of tailoring services to individual client needs is an example of custom production, which is highly personalized and differs significantly from standardized mass production techniques.

Step-by-step explanation:

The ABC Accountants do not standardize their service to customers because each customer has different needs. This is an example of custom production, which is option c. Custom production, also known as customized production, refers to the creation of products or services that are tailored to the specific requirements of individual customers. Unlike mass production where the focus is on producing large volumes of standardized items, custom production involves making items to order, which can range from bespoke suits to personalized accounting services as in the case of ABC Accountants.

Each client may require a unique set of services based on their financial situation, making the service inherently variable. For instance, one client may need tax preparation while another might need in-depth financial analysis or auditing. ABC Accountants uses a personalized approach to address these various demands, thereby demonstrating custom production characteristics.