Services Have Six Basic Characteristics: Intangibility, Inseparability of Production and Consumption

question 182

Multiple Choice

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

• A) labor-intensiveness.
• B) orientation toward value.
• C) homogeneity.
• D) heterogeneity.
• E) specialization.

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Definitions:

Fair Value

An accounting term referring to the estimated worth of an asset or liability based on current market conditions.

Consolidated Gross Profit

The total gross profit of a company and its subsidiaries before deducting any operating expenses, interest, and taxes, reported in the consolidated financial statements.

Transfer Price

The price used for the sale or transfer of goods and services between divisions within the same company, often used for accounting and tax purposes.

Inventory Costing

The method used to value and account for inventory, including approaches such as LIFO, FIFO, and weighted average cost.