Which of the Following Is Not a Characteristic That Distinguishes

question 61

Multiple Choice

Which of the following is not a characteristic that distinguishes services from goods?

• A)Service jobs are unskilled.
• B)A service is intangible.
• C)Services are perishable.
• D)Services are heterogeneous.
• E)None of these

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Definitions:

Variable Costing

An accounting method that only allocates variable production costs to products, excluding fixed costs.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Operating Income

The profit realized from a business's core operating activities, excluding costs and revenues from non-operating activities.

Variable Costing

An accounting methodology that only includes variable production costs (costs that change with the level of output) in product costs.