Products Can Be Placed on a Continuum Ranging from Relatively

question 59

Multiple Choice

Products can be placed on a continuum ranging from relatively pure goods to relatively pure services.John places an order for custom ordered office furniture from Home Depot.Where on that continuum would you place the custom ordered office furniture from Home Depot?

• A)relatively pure good
• B)service intensive good
• C)a pure good
• D)goods intensive service
• E)relatively pure service

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Definitions:

Overhead Cost

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative salaries.

Activity Cost Pool

A grouping of all the costs related to a particular business activity, facilitating more accurate allocation of overhead costs to products or services.

Machining

The process of removing material from a workpiece to shape or finish it using machine tools, typically in a manufacturing or engineering setting.

Unit-level Activity

Pertains to the activities or actions that vary directly with the number of units produced or services delivered.