Which of the Following Is a Characteristic of a Service

question 3

Multiple Choice

Which of the following is a characteristic of a service (i.e.,not a product or good) ?

• A)usually labor intensive
• B)involves the transformation of raw materials
• C)easy to track and monitor quality
• D)can be easily stored for future use

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Definitions:

Salvage Value

The forecasted sell-on value of an asset at the conclusion of its operational period.

Double-Declining Balance

A method of accelerated depreciation where an asset loses value at double the rate of the traditional straight-line depreciation method.

Straight-Line

A method of calculating depreciation or amortization by evenly allocating the cost of an asset over its expected useful life.

Sum-Of-Years' Digits

An accelerated method of depreciation which involves allocating the cost of an asset over its useful life in a way that results in higher depreciation expense in the earlier years and lower expense in later years.