Service Activities Are Time-Dependent,meaning That the Service Must Be Provided

question 5

Multiple Choice

Service activities are time-dependent,meaning that the service must be provided at a point in time when customers want to use it.This point in time is also known as

• A)peak demand.
• B)preferred demand.
• C)off-peak demand.
• D)high-contact time.
• E)high intensity time.

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Definitions:

Operating Expenses

Costs associated with a company's main operational activities, excluding the cost of goods sold.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recognized as a liability until performance.

Present Value Interest Factors

A factor used to calculate the present value of a single future payment or a series of future payments, discounted back to the present at a given interest rate.

Guaranteed Residual Value

The estimated value that a leased asset will have at the end of the lease term, as guaranteed by a third party or the lessee.