Which of the Following Is NOT a Reason Why Consumers

question 67

Multiple Choice

Which of the following is NOT a reason why consumers perceive greater risks when buying services than when buying goods?

• A) Warranties or guarantees do not accompany services
• B) Services are non-standardized
• C) Services are intangible
• D) Services have a high level of experience qualities
• E) Services are perishable

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Definitions:

Purchased Materials

Refers to the raw materials bought by a company to be used in production or merchandise bought for resale.

Manufacturing Department

A specific division within a company that is responsible for the production of goods.

Period Costs

Those costs that are used up in generating revenue during the current period and that are not involved in manufacturing a product, such as selling, general, and administrative expenses.

Production Requirements

The specific quantities and specifications of products that need to be produced within a certain timeframe to meet demand.