A Extraordinary Service Guarantee Possesses All of the Following Characteristics

question 3

Multiple Choice

A extraordinary service guarantee possesses all of the following characteristics EXCEPT

• A)It is unconditional.
• B)It is easy and quick to collect on by the customer.
• C)It is easy to understand.
• D)It is developed to favor the service organization.
• E)All of these characteristics should be included in a good service guarantee.

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Definitions:

Periodic Inventory System

An accounting method that records inventory purchase or sale transactions at the end of an accounting period.

Gross Method

An accounting method for recording purchases at the gross invoice amount before deducting any cash discounts for early payment.

Credit Terms

Conditions under which credit will be extended to a borrower, including the amount of credit, interest rate, and repayment schedule.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the cost of transporting the goods from the shipping point.