The Intangibility of Services Results in Promotion-Related Challenges for Service

question 181

True/False

The intangibility of services results in promotion-related challenges for service marketers because it is difficult to depict the actual performance of a service in an advertisement or to display it in a store.

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Definitions:

Gain On Sale

The profit realized when an asset is sold for more than its book value.

Indirect Method

A way of presenting the cash flow statement that adjusts net income for changes in balance sheet accounts to calculate cash flow from operating activities.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, reducing its book value on the balance sheet.