Which One of the Following Statements Is False

question 55

Multiple Choice

Which one of the following statements is false?

• A)Service that do not involve significant interaction with customers can be managed much the same as goods in a factory.
• B)A service is any primary or complementary activity that does not directly produce a physical product.
• C)Some very significant differences exist between goods and services that create different demands on the operations function.
• D)Designing and managing operations in a goods-producing firm is quite similar to that in a service-providing organization.

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Definitions:

Sales Mix

The proportion of different products or services that a company sells, affecting its overall profitability due to varying margins.

Margin Of Safety

The difference between actual sales and break-even sales, indicating the amount by which sales can drop before the business incurs a loss.

Contribution Margin Ratio

A measure of the profitability of a product, defined as the difference between the sales price and variable costs, expressed as a percentage of sales price.

Operating Income

EBIT, or earnings before interest and taxes, denotes the income a business generates from its fundamental activities.