Which of the Following Statements Is True

question 82

Multiple Choice

Which of the following statements is true?

• A) Tangible service attributes cannot be inventoried or carried in stock over long periods of time.
• B) The homogeneous nature of services means that no two services are exactly the same.
• C) Production and consumption of services often occur simultaneously.
• D) Customers cannot exert control over the service provider to achieve customization.
• E) Customers tend to be more involved in the production of goods than in the production of services.

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the variable cost incurred to produce each unit of output.

Marginal Cost

The leap in all-encompassing expenses associated with the production of an additional unit of a product or service.

Average Total Cost

The cost of producing everything, when divided by the number of units made, signifies the cost for each unit produced.

Average Variable Costs

The total variable costs of production divided by the quantity of output produced, representing the variable costs per unit of output.