One of the Reasons Used to Explain Why Customers Evaluate

question 36

Multiple Choice

One of the reasons used to explain why customers evaluate goods and services differently is:

• A) The greater degree of customer empowerment used to sell services
• B) Services and goods influence opportunity costs differently
• C) That customers often have limited reference prices for services
• D) The increased customer autonomy in the pricing of goods
• E) The cost of maintaining inventory

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Definitions:

Production Budget

A financial plan that estimates the number of units to be produced to meet sales goals within a given period.

Raw Materials

Fundamental components or substances used at the beginning of the production process to manufacture goods.

Raw Material Costs

The total expense incurred for materials that are used in the production of goods or services.

Beginning Inventory

The value of the total goods available for sale at the start of an accounting period.