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mixas84 [53]
3 years ago
8

Which is NOT true regarding differences between goods and​ services? A. Services tend to have higher customer interaction than g

oods. B. Most goods are common to many​ customers; services are often unique to the final customer. C. Services tend to have a more inconsistent product definition than goods. D. Tangible goods are generally produced and consumed​ simultaneously; services are not. E. ​None, i.e., all of the above are true.
Business
1 answer:
Blababa [14]3 years ago
7 0

Answer:

E. None, i.e., all of the above are true.

Explanation:

A. Services tend to have higher customer interaction than goods.  

B. Most goods are common to many customers; services are often unique to the final customer. C. Services tend to have a more inconsistent product definition than goods.  

D. Tangible goods are generally produced and consumed simultaneously; services are not.

E. None, i.e., all of the above are true.

All of the above are true

You might be interested in
Gibson Pharmaceuticals manufactures an over-the-counter allergy medications called Breathe. Gibson is trying to win market share
snow_tiger [21]

Answer:

Explanation:

(1) Overhead Absorption Rate (OAR) = Overhead cost/No of Activities

Materials Handling Cost :

Cost driver ⇒ Kilos ( 13,000 kilos)

OAR = $130,000/13,000 =  $10

Packaging Costs

Cost driver ⇒Machine hours ( 2,300 hours)

OAR = $460,000/ 2300=  $200

Quality Assurance Cost

Cost driver ⇒ Samples

OAR = $118,000/ 2,000  =$59

(2) Total Overhead Cost Allocated to each unit

Commercial containers

Materials Handling Cost = $10 X 8,096 = $80,960

Packaging Costs = $200 X 1,800 = $360,000

Quality Assurance Cost = $59 X 260 = $15,340

Total Costs = $80,960 + $360,000 + $15,340 = $456,300

Total commercial containers produced = 2,700

Overhead cost per unit of Container produced = $456,300/ 2,700 = $169 per unit

Travel-pack line

Materials Handling Cost = $10 x 5,976 = $59,760

Packaging Costs             = $200 x  600 = $120,000

Quality Assurance Cost = $59 x 360      =$21,240

Total Costs = $59,760 + $120,000 + $21,240 = $201,000

Total Travel packs produced = 30,000

Overhead cost per unit of travel pack = $201,000/ 30,000 = $6.7

(3) Using Original System ( Cost per machine hours)

Commercial containers

Total Overhead cost (using Machine hours) = $300 x 1,800   = $540,000

Total Overhead cost per unit = $540,000/2,700 = $200

Travel-pack line

Total Overhead cost (using machine hours) = $300 x 600 = $180,000

Total Overhead cost per unit = $180,000/30,000 = $ 6

(4)

Activity Based costing : this approach make use of activities that drive cost as a basis to determine the overhead cost per unit. This is more relevant in the current day manufacturing system where there are major activities that drive cost other than just machine hours. Using ABC allowed for fair sharing of overhead costs among different products lines which also help in determining the right pricing and identify which product consumed more activities that drive cost.

Whereas, traditional system relied on the assumption that overhead costs are majorly driven by machine hours which obviously may not be true in the current day production system. Using this approach may lead to a wrong pricing of products and also lead to  wrong decision being made on a products most especially where the company has more than one product lines.

In the case of Gibson, commercial  containers overhead unit cost was over estimated while Travel-pack line overhead unit cost was under-estimated using original costing system.

The error under original system was latter corrected using ABC

5 0
3 years ago
Present Value of Ordinary Annuity Period/Rate 5% 6% 7% 8% 9% 10 7.7217 7.3601 7.0236 6.7101 6.4177 11 8.3064 7.8869 7.4987 7.139
klasskru [66]

Answer:

The discount rate of 8% for 11 year period provides the present value of annual cash flows to be equal to the initial investment.

Explanation:

Using the table of present value of annuity provided, we can check the rate and time period which is return the present value of cash flows from the project to be equal to initial Investment.

We are told that the Project's life is expected to be 11 Years. Thus using the 11 year period from the table we can see the following rates,

<u>11 Year Period</u>

Rate = 5%  ,  Annuity Factor = 8.3064  

Rate = 6%  ,  Annuity Factor = 7.8869

Rate = 7%  ,  Annuity Factor = 7.4987

Rate = 8%  ,  Annuity Factor = 7.1390

Rate = 9%  ,  Annuity Factor =  6.8052

We know that the annual cash flows from the project is $1,000,000 and we know the Initial Outlay is $7,139,000.

Multiplying the annual cash flow from the above annuity factors for each rate we can see which rate provides the present value of annual cash flows to be equal to initial outlay.

Rate = 5%  ,  Present value = 8.3064 *  1000000    = $8,306,400  

Rate = 6%  ,  Annuity Factor = 7.8869 *  1000000    = $7,886,900

Rate = 7%  ,  Annuity Factor = 7.4987 *  1000000    = $7,498,700

Rate = 8%  ,  Annuity Factor = 7.1390 *  1000000    = $7,139,000

Rate = 9%  ,  Annuity Factor =  6.8052 *  1000000    = $6,805,200

From the above calculation we can see that the rate of 8% provides the present value of annual cash flows to be equal to the initial investment.

7 0
3 years ago
A salesperson who calls phone numbers from a purchased list of new parents and asks, "Have you been considering the purchase of
SCORPION-xisa [38]

Answer: Prospecting stage

Explanation:

 The prospecting stage is one of the first step in the personal selling process which basically used for identifying the efficient consumers and also developed the customer database in the system for the purpose of communication.

The prospecting stage is basically refers to the database, social contacts, various types of trading show that are used for locating the potential consumers according to the requirement.

Therefore, Prospecting stage is the correct answer.

5 0
3 years ago
Which of the following accurately describe depreciable cost? i. The amount of cost a company intends to depreciate over the life
kirza4 [7]

Answer:

(i) and (iv)

Explanation:

The appreciable cost is the cost in which the assets can be depreciation over the useful life

And, the appreciable cost is come after deducting the salvage value from the acquisition cost      

The formula to compute the depreciation expense using the straight-line method is shown below:

= (Original cost - salvage value) ÷ (useful life)

So it can be calculated after considering the first and four options

6 0
4 years ago
During March, the production department of a process manufacturing system completed a number of units of a product and transferr
ANEK [815]

Answer:

Direct Materials EU = 165,000

Direct Labour EU = 144,000

Explanation:

Equivalent Units (Weighted Average Method) =  Beginning Goods In process + Units Completed + Ending Goods x % of completion

Direct Materials:  25,000 + 110,000 + 30,000 x 100% = 165,000

Direct Labor: 25,000 + 110,000 + 30,000 x 30% = 144,000

Remember: In the weighted average cost system the units in process at the beginning are count as a full equivalent unit of production.

8 0
3 years ago
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