Classifying Costs as Fixed and Variable in a Service Entity

question 37

Multiple Choice

Classifying costs as fixed and variable in a service entity enables managers to

• A) control costs.
• B) measure performance.
• C) cost services.
• D) cost organisational units.

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Definitions:

Homogeneous Products

Refers to goods that are identical in quality and features, making them perfect substitutes for each other in the eyes of consumers.

Decision Variable

A variable that represents choices available to the decision-maker in problem-solving or optimization scenarios.

Barriers

Obstacles that prevent entry into a market or impede growth and can be economic, regulatory, technological, or cultural.

Product Differentiate

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.