One Way Service Businesses Communicate a Higher Level of Service

question 137

Multiple Choice

One way service businesses communicate a higher level of service quality to their customers is by having their employees be clean, sharp looking, and dressed in appropriate uniforms. This is a way to address the ____ characteristic of services.

• A) intangibility
• B) perishability
• C) tangibility
• D) inseparability
• E) heterogeneity

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Definitions:

Temporary Difference

A difference that arises between the tax bases of assets or liabilities and their carrying amount in the financial statements, which will result in taxable or deductible amounts in future years.

Bad Debts Expense

The cost to a company resulting from the inability to collect a receivable because a customer is unable to fulfill their payment obligations.

Product Warranty Costs

Expenses incurred by a company due to repairing or replacing products that fail to perform satisfactorily within a given warranty period.

Operating Loss

A situation where a company's operating expenses exceed its revenues, indicating it is not making a profit from its core activities.