Fred White Has Just Accepted a Sales Position with the ABC

question 132

Multiple Choice

Fred White has just accepted a sales position with the ABC Health Maintenance Organization,a major provider of health care services.He had been selling medical supplies for some time and found that he understood how customers bought medical supplies.Which of the following is likely to be a characteristic of the health care service purchase?

• A)Customers are engaged in a low involvement purchase process.
• B)The quality of services can be predetermined in a similar manner to tangible products.
• C)The buyer does not participate in producing the service.
• D)A consumer may not have the ability to judge the quality of medical care service even after the service has been provide

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Definitions:

Record Sale

To record a sale refers to the process of documenting a sales transaction in the accounting books, acknowledging the exchange of goods or services for payment.

Revenue Journal

A revenue journal is an accounting ledger that records sales transactions where a business earns revenue, typically used in a manual accounting system.

Segment Data

Financial information that is broken down into sub-parts of a company, such as departments or product lines, to analyze performance and make strategic decisions.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards for financial accounting and reporting in the U.S.