Which of the Following Statements About Services Is Most Accurate

question 165

Multiple Choice

Which of the following statements about services is most accurate?

• A) Services are classified as durable and nondurable.
• B) The marketing of services is, in a practical sense, identical to the marketing of products or ideas since they both satisfy customer needs.
• C) Only 10 percent of all jobs created in the United States are in the services sector.
• D) Services are sometimes necessary to augment goods.
• E) Services are among the easiest products to market because of their tangible nature.

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Definitions:

Inventory

An accounting term for goods and materials held by a company in stock with the intention of selling them or transforming them in the production process.

Consolidated Cost

The combined cost of an asset that includes the purchase price and all costs necessary to prepare the asset for its intended use, within a group of consolidated companies.

Cost Method

An accounting method used for investments, where the investment is recorded at cost and adjusted only for dividends received.

Consolidated Financial Statements

Financial reports that aggregate the financial position, results of operations, and cash flows of a parent company and its subsidiaries.