Place Utility Is Created by the Customer Having Access to the Product

question 15

True/False

Place utility is created by the customer having access to the product to use or store for future use.

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Definitions:

Maintenance Cost

Expenses incurred to keep property, equipment, or assets in effective operating condition.

Machine Hour

A measure of production time, representing the time a machine is operated to perform work.

High-low Method

A technique used in managerial accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Variable Cost

Costs that change in proportion to the activity or business volume, such as materials and labor directly involved in production.