It Is Often Difficult for a Customer to Know the Quality

question 35

Multiple Choice

It is often difficult for a customer to know the quality of a 3-D television.If a television manufacturer advertises its 3-D televisions then:

• A) this i5 a costles5 action that fals to 51gnal the 3-D televion is a good product
• B) this is a costless action that succeeds in simanling that the 3-D televisidn is a good prochuct
• C) this is a costly action that succeeds in signalling that the 3 -D television is a good product
• D) this is a costly action that fails to sipnal the 3 -D television is a pood product

---

Definitions:

Preset Costs

Preset costs are predetermined expenses that a company expects to incur in the carrying out of its operations.

Product

A good or service that is created through a process and is available for sale to consumers.

Service

The act of providing assistance or benefits to customers or clients without the sale of tangible goods.

Price Variances

A measurement of the difference between the actual cost of a good or service and its expected cost.