One Technique That Service Providers Can Use to Address the Problem

question 102

Multiple Choice

One technique that service providers can use to address the problem of perishability is to:

• A) offer incentives to encourage customers to use the service during non- peak periods.
• B) use a consistent pricing policy.
• C) eliminate complementary services so that employees can focus on the core.
• D) provide tangible cues through the physical environment, communications and staff uniforms.
• E) standardise the service process.

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Definitions:

Direct Method

An approach to preparing the cash flow statement where actual cash flows from operating activities are disclosed, as opposed to the indirect method which adjusts net income for non-cash transactions.

Operating Activities

Activities related to the core business functions of a company, including production, sales, and delivery of services, as reflected in its cash flow.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid.