How Do Consumers Differ, If at All, in the Ways

question 34

Multiple Choice

How do consumers differ, if at all, in the ways they assess satisfaction with tangible goods and services?

• A)They give more weight to courteous salespeople when buying tangible goods.
• B)Because of credence properties, they have more trouble assessing tangible goods.
• C)With tangible goods, they have more trouble assessing outcomes.
• D)With services, they have more trouble assessing technical quality.
• E)They assess both in terms of conformance to technical specifications.

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Definitions:

Inventory Returns Estimated

An approximation of the value or volume of goods that will be returned from customers back to the inventory.

Sales Refund Payable

A liability account that holds funds reserved for future refunds to customers for returned goods.

Sales Returns

Goods returned by customers to the seller after the sale, which result in a reduction of revenue previously recognized.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct periods.