Services

question 152

Multiple Choice

Services

• A) are tangible.
• B) often have to be produced in the presence of the customer.
• C) are easy to store.
• D) are usually produced before they are sold.
• E) all of these choices are correct.

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Definitions:

Operating Cost

Expenses associated with the day-to-day functions of a business, excluding costs tied to the production of goods or services.

Useful Life

The estimated duration over which an asset is expected to be functional and economically viable for its intended purpose.

Selling Price

The actual amount charged to customers for a product or service, determined by considering production costs, market demand, competition, and profit margin.

Value-based Pricing

Pricing strategy based on the perceived value of a product or service to the customer rather than its cost of production.