Characteristics of a Service That Consumers Find Hard to Evaluate

question 35

Multiple Choice

Characteristics of a service that consumers find hard to evaluate even after purchase and consumption are called:

• A)search qualities
• B)experience qualities
• C)credence qualities
• D)intangible qualities
• E)variable qualities

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Definitions:

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they are incurred.

Plastic Parts

Components or materials made out of plastic, often used in manufacturing and production of various goods.

Direct Materials

Essential parts that directly contribute to the fabrication of particular merchandise or services.

Product Cost

The total amount incurred to manufacture a product, including direct materials, labor, and overhead expenses.