All of the Following Are True About the Price Element

question 85

Multiple Choice

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

• A)Price can be referred to in a variety of terms.
• B)Price can affect consumer perceptions of the service.
• C)Price can be kept consistent through the use of off-peak pricing.
• 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:

Manufacturing Costs

The total costs involved in making products which can include direct materials, direct labor, and manufacturing overhead.

Direct Material

These are the raw materials and components that are consumed directly in the manufacture of a product.

Variable Overhead

Costs that vary in total in direct proportion to changes in activity level or volume, such as utility costs or raw materials that fluctuate with production levels.

Factory Depreciation

The decrease in value of manufacturing equipment and facilities over time due to wear and tear or obsolescence.