Which of the Following Statements Is True with Regard to Service

question 63

Multiple Choice

Which of the following statements is true with regard to service operations?

• A)It encompasses all activities and processes required for implementing the service.
• B)Service operations activities that are not visible to the customer are referred to as front stage activities.
• C)Service operations activities that are visible to the customer are referred to as back stage activities.
• D)Service operations activities pertaining to the supply chain are referred to as downstream activities.

---

Definitions:

Standard Material Requirement

The predetermined amount of materials specified for the production of a single unit of product, often used in budgeting and controlling costs.

Standard Cost

A predetermined or budgeted cost of manufacturing a product or performing a service, used as a benchmark to measure performance.

Direct Materials Quantity Variance

The difference between the actual quantity of direct materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Direct Materials Price Variance

It measures the difference between the actual cost and the standard cost of direct materials used in production, indicating how effectively a company is purchasing its raw materials.