Which of the Following Is True for Services

question 85

Multiple Choice

Which of the following is true for services?

• A) All services are people-based, while goods are equipment-based.
• B) Service providers can be both for-profit or nonprofit.
• C) All service companies follow the same process to deliver their services.
• D) The client's presence is a hindrance during the service delivery process.
• E) Service providers develop similar marketing programs for personal services and business services.

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Definitions:

Modified Cash Basis

It is an accounting method that combines elements of the cash basis and accrual basis, recording income when received but expenses when incurred.

Research and Development

This is a set of activities intended to improve existing products or services or to create new ones, often involving scientific or technological innovation.

Straight-Line Depreciation

An approach to evenly spread out an asset's expense over its lifespan.

Overhead Allocation

The process of distributing indirect costs to various cost objects, such as products or departments, to accurately reflect the resources consumed by each.