Four Characteristics Are Used to Differentiate Services from Goods

question 18

Multiple Choice

Four characteristics are used to differentiate services from goods. Which of the following is NOT one of those characteristics?

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

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Definitions:

Production Increase

An upward adjustment or rise in the amount of goods and services produced by a company.

Prime Cost

The sum of direct materials and direct labor costs in a manufacturing process, not including overhead expenses.

Incremental Manufacturing Cost

The additional cost incurred to produce an additional unit of product, including direct materials, direct labor, and variable overhead.

Production Increase

The rise in the quantity of goods and services produced by a company over a specific period.