All of the Following Are True About the Price Element

question 115

Multiple Choice

All of the following are true about the price element of services except

• A)price can be referred to in a variety of terms.
• B)price can affect consumer perceptions of the service.
• C)price is used in on-peak pricing to manage the variations in supply for the service.
• D)price can be used in capacity management.
• E)price can be used in services to imply a higher quality.

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Definitions:

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives. It's a core part of management and daily life.

Advertising Expense

The cost incurred by a business to promote its products, services, or brand through various media channels.

Direct Labor

The workforce costs that are directly attributable to the production of goods or services, such as wages for factory workers.

Factory Overhead

Factory overhead encompasses all indirect costs associated with manufacturing, including utilities, depreciation, and maintenance expenses.