In Regard to Ways Customers Evaluate Services Compared to Their

question 41

Multiple Choice

In regard to ways customers evaluate services compared to their evaluation of goods, which of the following is not true?

• A)For services, customers seek and rely more on personal sources of information.
• B)Customers normally adopt innovations in services faster.
• C)Customers perceive greater risk when buying services.
• D)Dissatisfaction with services is often the result of a customer's inability to properly perform or co-produce their part of the service.

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Definitions:

Labor Rate

The amount paid per hour of labor, including wages and sometimes additional benefits, for direct and indirect labor.

Direct Materials Purchase Budget

A financial plan that estimates the raw materials required for production and their associated costs, aiding in financial and operational planning.

Ending Inventories

The total value of all unsold goods that a company has in stock at the end of an accounting period.

Direct Labor Budget

A financial plan that estimates the cost of direct labor needed to meet production goals, part of the overall budgeting process.