Which of the Following Statements About Service Utility Is Most

question 239

Multiple Choice

Which of the following statements about service utility is most accurate? Service utility is

• A) becoming less important to retailers in this age of self-service marketing.
• B) the one type of utility that online firms provide more efficiently than traditional retailers.
• C) more likely to be provided by wholesalers than by retailers.
• D) becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing.

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Definitions:

Cost of Goods

The total cost of manufacturing or acquiring a product or service that is sold to customers.

Machine-Hour

A measure of production or operation time where costs are allocated based on the number of hours a machine is operated.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead to individual jobs.

Machine-Hours

A unit of measurement for production capacity, indicating the total number of hours that machinery is operational during a given period.