Which of the Following Statements About Services Is Most Accurate

question 273

Multiple Choice

Which of the following statements about services is most accurate?

• A) Services are classified as durable and nondurable.
• B) The marketing of services is, in a practical sense, identical to the marketing of products or ideas since they both satisfy customer needs.
• C) Only 10 percent of all jobs created in the United States are in the services sector.
• D) In the United States, services are an even more important part of our gross domestic product than goods.
• E) Services are among the easiest products to market because of their tangible nature.

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Definitions:

Traditional Costing Method

An accounting method that assigns indirect costs to products based on a predetermined overhead rate, often not reflecting the actual consumption of resources by each product.

Direct Labor-Hours

The total number of hours worked directly on the production of goods.

Overhead Assigned

The process of allocating manufacturing overhead costs to specific products or cost objects based on a predetermined rate or method.

Overhead Applied

The assigning of overhead costs to goods produced based on a predetermined rate or basis such as machine hours or labor hours.