Unlike Physical Products, Services Cannot Be Seen, Tasted, Felt, Heard

question 3

Multiple Choice

Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. This characteristic of services is known as ________.

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

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Definitions:

Cost Information

Data about the expenses involved in producing goods or services, used for budgeting, pricing, and financial analysis.

Cost Drivers

Factors that cause a change in the cost of an activity or production, such as labor hours or machine usage.

Facility-level Costs

Expenses that are not directly tied to a specific product or service but are necessary for the overall operation of a facility.

Overhead Cost

Indirect expenses related to the day-to-day running of a business, such as rent, utilities, and administrative costs.