Which Product Is an Example of Possession Utility

question 156

Multiple Choice

Which product is an example of possession utility?

• A) a smartphone with a large selection of new apps
• B) the local dairy that offers to deliver bottles of milk to a customer's doorstep
• C) disposable diapers that come equipped with resealable tabs
• D) a gourmet food store that carries a line of ready-made salads
• E) a mobile phone company that offers six-month financing, same as cash

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Definitions:

Cost Pools

Groups of individual costs combined to allocate costs more efficiently.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming for more accurate product costing.

Order Processing

The activities involved in receiving, handling, and fulfilling customer orders, from initial receipt through delivery.

Idle Capacity

The portion of a company's resources or assets that is underused or not producing income, often leading to inefficiencies and increased costs.