Service Product Costs Are Inaccurate in Mass Service Operations Because

question 72

Multiple Choice

Service product costs are inaccurate in mass service operations because of the:

• A) difficulty of identifying cost drivers.
• B) high level of variable costs.
• C) high level of fixed costs.
• D) low level of fixed costs.

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Definitions:

Net Profit Margin

A financial performance ratio that shows the percentage of net income generated from total revenue, indicating the efficiency of a company in converting sales into actual profit.

Dividends

Payments made by a corporation to its shareholder members from its profits or reserve.

Market Price

Market price is the current value at which an asset or service can be bought or sold in the marketplace.

Debt-To-Equity Ratio

An indicator measuring the balance between financing a company's assets through shareholders' equity and debt.