Production and Consumption of Services Must Simultaneously Occur Due to the ____

question 32

Multiple Choice

Production and consumption of services must simultaneously occur due to the ____ characteristic of services.

• A) intangibility
• B) heterogeneity
• C) customer contact
• D) perishability
• E) inseparability

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Definitions:

Relevant Costs

Costs directly related to a specific decision, which will change as a result of that decision.

Average Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Marginal Cost

The financial outlay for creating one further unit of a good or service.

Extent Decisions

Decisions related to the scale or scope of an operation or project, often involving considerations of expansion or reduction.