A Firm Producing a Good Is More Likely to Have

question 78

Multiple Choice

A firm producing a good is more likely to have which set of the following characteristics compared to a firm providing a service?

• A) many subjective quality standards, tangible product, and locate away from customers
• B) many subjective quality standards, intangible product, and locate away from customers
• C) many objective quality standards, tangible product, and locate near customers
• D) many objective quality standards, tangible product, and locate away from customers
• E) many objective quality standards, intangible product, and locate away from customers

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Definitions:

Property, Plant, and Equipment

Long-term assets, including land, buildings, machinery, and vehicles, used in the operation of a business.

Standard Cost Variances

The differences between the expected (standard) costs and the actual costs incurred for materials, labor, and overhead during a period.

Selling and Administrative Expenses

Overhead costs associated with the general operation of a company and the selling of goods or services, not directly tied to production.

Standard Cost

A predetermined cost of manufacturing, servicing, or marketing an item, which is often used for budgeting and performance evaluation.