Unlike Tangible Products, Services Have the Characteristic of Perishability

question 3

Multiple Choice

Unlike tangible products, services have the characteristic of perishability. This means that services

• A) may lose their value over time
• B) may lose their value due to improper conservation
• C) cannot be stored for future use
• D) none of the above

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Definitions:

Converted

The process of changing or causing something to change from one form to another.

Remaining to Spend

The amount of budget or funds left available to use or allocate.

Cost Of Goods

The direct expenses associated with producing goods, including materials and labor costs, but excluding indirect expenses like distribution and sales force costs.

Operating Expenses

Costs associated with the day-to-day operations of a business, including rent, utilities, and payroll.