Identify the Reason Why the Quality of Services Can Vary

question 35

Multiple Choice

Identify the reason why the quality of services can vary more than the quality of goods.

• A) Producers of services have procedures to prevent, identify, and correct defects.
• B) Most services are human performances and often customized to the needs of the buyer.
• C) Producers of services typically customize products to the needs of the buyer.
• D) Unlike goods, customers are more likely to purchase defective services.

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Definitions:

Materials Quantity Variance

The gap between the actual and expected quantities of materials used in production, with each difference multiplied by the standard unit cost.

Raw Materials Purchase

The acquisition of basic materials needed for the production of goods, a critical input in the manufacturing process.

Raw Materials Inventory

The stock of basic materials that are required to manufacture goods, held by a company awaiting to be used in the production process.

Raw Materials Purchases

Refers to the total cost of all raw materials bought by a company over a specific period for use in its production process.