A High-Quality Product That Doesn't Break Down and Doesn't Suffer

question 35

Multiple Choice

A high-quality product that doesn't break down and doesn't suffer from significant performance deterioration over a long period of time is said to have ________.

• A)conformance
• B)aesthetics
• C)features
• D)durability

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Definitions:

Real Income

The purchasing power of an individual's or household's income, accounting for inflation.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Interest Expense

The cost incurred by an entity for borrowed funds; interest expense is often deductible for the borrower for tax purposes.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.