Figure: 12-2 -According to the Service Continuum in Figure 12-2,which of the 12-2,which

question 95

Multiple Choice

Figure: 12-2
-According to the service continuum in Figure 12-2,which of the following organizations has an almost perfect balance of tangible and intangible attributes?

• A)Tailored suit
• B)Tutoring service
• C)Advertising agency
• D)Fast-food restaurant

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Definitions:

Indirect Costs

Expenses that are not directly attributable to a specific project or activity but are necessary for the general operation of a business.

Production Departments

Units within a manufacturing organization responsible for different stages of the production process.

Departmental Net Income

The profit or loss generated by specific departments within a business, calculated after allocating direct and indirect costs.

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information related to the responsibilities of individual managers or departments.