Which of the Following Is a Characteristic That Can Be

question 48

Multiple Choice

Which of the following is a characteristic that can be used to guide the design of service systems?

• A) Services cannot be inventoried.
• B) Services are all similar.
• C) Quality work means quality service.
• D) Services businesses are inherently entrepreneurial.
• E) Even service businesses have internal services.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are an integral part of the finished product.

Target Costing

A pricing strategy in which the selling price of a product is determined first, and then the manufacturing cost is managed to meet that selling price.

Mark-up

The amount added to the cost price of goods to cover overhead and profit.

Eliminate

The process of removing or getting rid of something.