Experience Differentiation

question 90

Multiple Choice

Experience differentiation

• A) isolates the consumer from the delivery of a service.
• B) is an extension of product differentiation in the service sector.
• C) uses only the consumer's senses of vision and sound.
• D) keeps consumers from becoming active participants in the service.
• E) is the same as product differentiation, but applied in the service sector.

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Definitions:

Percentage-Of-Completion Method

An accounting method used to recognize revenue and expenses of long-term contracts as a proportion of the work completed during the period.

Revenue Recognition

The accounting principle that outlines the specific conditions under which revenue is recognized as earned and can be reported on financial statements.

Contract Price

The total agreed upon amount to be paid for goods or services as specified in a contract.

Percentage-Of-Completion Method

is an accounting technique used to recognize revenue and expenses of long-term contracts proportionally as the work is completed.