Which of the Following Statements Is NOT True

question 181

Multiple Choice

Which of the following statements is NOT true?

• A) Both service and manufacturing operations transform raw materials into finished products.
• B) Consumers use different measures to judge services and goods because services include intangibles, not just physical objects.
• C) A high-contact service system exists when the customer is not part of the system.
• D) In service operations, finished products or outputs are people with needs met and possessions serviced.

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Definitions:

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment, department, or product and would disappear if the segment was eliminated.

Variable Expenses

Costs that change in proportion to business activity or production volume, such as materials costs, direct labor, and utilities for machinery.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, used as a benchmark for evaluating potential investments.

Average Operating Assets

This refers to the average value of the assets used in operations over a certain period, which can indicate the efficiency of asset use in generating income.