Examlex
Which of the following characteristics apply to service organisations?
i. They produce intangible outputs.
ii. Services cannot be stored.
iii. They purchase goods for sale.
iv. Services are consumed as they are produced.
Explicit Costs
Payments made directly to external parties as part of business operations, including salaries, rental fees, and the cost of goods.
Implicit Costs
are indirect expenses that do not involve a direct payment of money but represent a loss of opportunity to use resources elsewhere.
Normal Rate
A term that can refer to the typical or standard interest rate charged by lenders or expected returns on investments under normal conditions.
Operating Profit
The profit earned from a firm's normal core business operations, excluding deductions of interest and tax.
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