One Approach Marketers Are Using to Reduce Service __________ Is

question 84

Multiple Choice

One approach marketers are using to reduce service __________ is to replace people with machines whenever appropriate.

• A) intangibility
• B) inseparability
• C) spendability
• D) perishability
• E) variability

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the amount of production or business operations.

Cost Estimation Methods

Techniques used to predict the expenses likely to be incurred in the manufacturing of a product or the execution of a project.

Cost Equation

An equation used to estimate costs, typically in the form of fixed costs plus variable costs times the number of units.