Which of the Following Is a Major Factor That Distinguishes

question 6

Multiple Choice

Which of the following is a major factor that distinguishes service design and development from manufacturing design and development?

• A) The service process and service product can be developed independently.
• B) The service package has the same legal protection available to manufactured goods.
• C) The service package is the major output of the development process.
• D) Manufacturing is far more capital intensive than services.
• E) Capacity decisions are much more critical in manufacturing operations.

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Definitions:

Prior Service Cost

The expense recognized by a pension plan for benefits earned by employees in periods prior to the implementation of the pension plan.

Projected Benefit Obligation

An actuarial calculation of the total projected benefits owed to employees in a defined benefit plan, factoring in expected future salary increases.

Pension Asset/Liability

Represents the surplus or deficit in a company's pension plan, indicating whether assets are sufficient to cover pension obligations.

Funded Status

The financial status of a pension plan, usually indicating the extent to which assets cover liabilities.