Which of the Following Is True of Inseparable Services

question 10

Multiple Choice

Which of the following is true of inseparable services?

• A) Inseparable services cannot be produced and marketed simultaneously.
• B) Direct sale is the only feasible channel of distribution for inseparable services.
• C) When the buyer has a tangible representation of a service, the problem of inseparability occurs.
• D) Inseparable services can be inventoried.

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Definitions:

Average Operating Assets

The average value of the resources used in the operations of a business, calculated over a certain period.

Sales

The total revenue a company generates from selling goods or services to customers.

Stockholders' Equity

The ownership stake of shareholders in a corporation, which is the value of the company's assets minus its liabilities.

Average Operating Assets

An indicator of how efficiently a company is using its assets to generate earnings during a period, calculated as the average of the beginning and ending values of the assets for the time period.