Dr Thomas Is a Dentist Practicing in Chicago

question 55

Multiple Choice

Dr. Thomas is a dentist practicing in Chicago. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since none of the appointments took place, he did not make any money in those four days, even though his normal expenses remained. In this scenario, which characteristic of services most likely affected Dr. Thomas' business?

• A) tangibility
• B) feasibility
• C) durability
• D) homogeneity
• E) perishability

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Definitions:

Actual Production

The quantity of goods or services produced during a specific time period, as opposed to planned or projected output.

Fixed Overhead Volume Variance

Fixed Overhead Volume Variance measures the difference between the budgeted and the actual volume of production, affecting the overall fixed overheads allocated per unit.

Control Purpose

The objective of establishing procedures and mechanisms to manage and regulate operations, processes, or systems to achieve desired outcomes.

Capacity Costs

Expenses related to the maximum level of production or service capacity that a business can achieve, including costs for maintaining and operating production facilities.