One of the Unique Characteristics of Services Products Is That

question 41

Multiple Choice

One of the unique characteristics of services products is that of simultaneity (inseparability) , which occurs because:

• A)The high people content can cause variability in product quality
• B)Services cannot be saved or stored
• C)Services cannot be separated from the physical goods
• D)Fluctuating demand often requires special staffing strategies
• E)None of the above

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Definitions:

Job-Order Costing

A costing method used to calculate the cost of producing each specific order or job, making it suited for custom, one-off products.

Work In Process

Inventory that includes goods that are in the production process but are not yet completed.

Schedule Of Cost Of Goods Manufactured

A schedule that contains three elements of product costs—direct materials, direct labor, and manufacturing overhead—and that summarizes the portions of those costs that remain in ending Work in Process inventory and that are transferred out of Work in Process into Finished Goods.

Direct Materials Cost

The cost of raw materials that are directly traceable to the production of a specific product or service.