The Intangible Nature of Services Often Leads Customers to Rely

question 155

True/False

The intangible nature of services often leads customers to rely on price as an indicator of quality.

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Definitions:

Product Level

Pertains to costs or activities associated with a specific product rather than the business as a whole.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the resources that they consume, aiming to provide more accurate costing information.

Implementation Costs

Expenses associated with putting a new system or process into use.

Overhead

The indirect costs of running a business that are not directly tied to a specific product or service, such as utilities, rent, and administrative salaries.