The Intangibility Element of a Service Refers to the Fact

question 167

Multiple Choice

The intangibility element of a service refers to the fact that it

• A) has value that can only be determined by using subjective criteria.
• B) can't be held, seen, or touched before the purchase decision.
• C) requires the ability to provide the service even in times of no demand.
• D) can maintain or accumulate good will with customers.
• E) can be objectively evaluated.

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Definitions:

Consignment

A business arrangement where goods are left in the possession of another party to sell, but the owner retains ownership until the goods are sold.

Days' Sales

Refers to the ratio that indicates how many days worth of sales a company has in inventory, providing insight into inventory management efficiency.

Inventory

An accounting term for goods and materials that a business holds for the ultimate goal of resale or repair.

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods during a certain period of time, indicating the efficiency of inventory management.