All of the Following Are True About the Price Element

question 215

Multiple Choice

All of the following are true about the price element of services EXCEPT:

• A)price can be referred to in a variety of terms.
• B)price can affect consumer perceptions of the service.
• C)price is used in on-peak pricing to manage the variations in supply for the service.
• D)price can be used in capacity management.
• E)price can be used in services to imply a higher quality.

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Definitions:

Total Cost

The complete cost involved in the production, operation, or activity, including both fixed and variable costs.

Work in Process

Inventory that is in the production process and has not yet been completed or transferred to the finished goods inventory.

Raw Materials Purchased

The total cost of all raw materials that a company buys during a period for use in production.

Total Manufacturing Costs

The sum of all expenses directly involved in the production of goods, including direct materials, direct labor, and manufacturing overhead.