Parents Everywhere Are Very Busy and Often Cannot Spend Time

question 61

Multiple Choice

Parents everywhere are very busy and often cannot spend time with their children.In the Netherlands,children who want a bedtime story can call the telephone service and request to listen to one of twenty prerecorded fairy tales.The phone company charges $7 per story.Because of the prerecording of the stories,this bedtime service reduces the problems typically associated with the _____ characteristic of services.

• A) Versatility
• B) Heterogeneity
• C) Simultaneous production and consumption
• D) Perishability
• E) Intangibility

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Definitions:

Gross Profit Method

An inventory valuation technique estimating the cost of goods sold and the ending inventory, based on the gross profit margin.

LIFO Liquidations

A situation where older inventory, costed at historical prices, is sold, potentially leading to an inflated profit margin due to lower cost of goods sold.

Interim Report

A financial statement covering a period of less than one fiscal year that provides updates on a company's performance and financial position between annual reports.

Operating Results

The outcome of a company's core business operations, indicating profitability or loss over a certain period.