Which of the Following Statements Does NOT Describe a Fundamental

question 43

Multiple Choice

Which of the following statements does NOT describe a fundamental characteristic of a core service?

• A)A service lacks a physical form.
• B)The customer and service provider often interact to produce the service.
• C)It is difficult to standardize the quality of a service performance.
• D)A service only exists at the time of its production.
• E)External environmental forces heavily influence a service organization.

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the amount by which sales can drop before reaching a loss.

Break-even Point

The point at which total cost and total revenue are equal, resulting in neither profit nor loss.

Break-even Sales

The amount of revenue required to cover total costs, both fixed and variable, at which point a business neither makes a profit nor suffers a loss.

Variable Cost

Overheads that move in sync with the volume of manufacturing or sales, covering labor and material costs.