The Term Inseparable Refers to That Characteristic of Service Which

question 52

Multiple Choice

The term inseparable refers to that characteristic of service which states that:

• A)services cannot be touched, tasted, or seen.
• B)the quality of service may vary because it is provided by humans.
• C)services cannot be held in inventory.
• D)services are produced and consumed at the same time.
• E)services are perishable and cannot be stored for future use.

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Definitions:

Periodic System

An inventory accounting system where goods are physically counted at the end of a specific period to determine the cost of goods sold and ending inventory.

Purchases Returns and Allowances

Refers to a reduction in the cost of purchases due to items being returned or allowances provided by the seller for damaged or unsatisfactory goods.

Merchandise Inventory

Goods that a company holds for the purpose of sale to customers in the ordinary course of business.

Merchandise Inventory

Goods or products that a company holds for the main purpose of selling them to customers.