The Intangibility Aspect of a Service Means That

question 41

Multiple Choice

The intangibility aspect of a service means that

• A) there is a lack of perceived quality compared to a tangible good.
• B) unused capacity cannot be stockpiled or inventoried for later use.
• C) consumers may have a problem evaluating service offerings.
• D) services are not produced at the same time they are consumed.
• E) services are not labor-intensive.

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Definitions:

Differential Analysis

The process of comparing the costs and benefits of alternative business decisions, focusing on differences in outcomes.

Finished Desk

A final product, specifically a desk, that has completed the manufacturing process and is ready for sale.

Processing Cost

The total expense incurred to convert raw materials into finished products, including labor, materials, and overhead costs in a manufacturing process.

Differential Analysis

The process of comparing the cost and revenue of different business decisions to determine which option offers the best financial outcome.