Intangibility of Services Means That

question 87

Multiple Choice

Intangibility of services means that

• A) products cannot be seen, tasted, heard or felt before the purchase.
• B) products cannot be stored.
• C) exchange takes place in direct contact.
• D) both a and c.

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Definitions:

Inventories

Quantifiable goods or materials held by a company for the purpose of sale in the ordinary course of business, production, or use in creating goods and services.

Depreciable Asset

An asset that decreases in value over time due to use, wear and tear, or obsolescence and can be written off against income.

Useful Life

The estimated period over which an asset is expected to be usable by an entity, or the number of production or similar units expected to be obtained from the asset by an entity.