Of the Three Types of Attributes Customers Use to Evaluate

question 31

True/False

Of the three types of attributes customers use to evaluate goods and services, goods are high in search attributes, while services are high in experience and credence attributes.

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Definitions:

Direct Labor Rate Variance

This refers to the difference between the actual cost of labor and the expected (or standard) cost of labor used in producing goods.

Direct Labor

The cost of wages for workers who are directly involved in the production of goods or the delivery of services.

Variable Overhead Efficiency Variance

The difference between the standard cost of variable overheads allocated for actual production and the actual variable overheads incurred, used to assess efficiency in controlling variable overhead costs.

Fixed Overhead Spending Variance

The difference between the actual fixed overhead costs incurred and the budgeted or standard fixed overhead costs.