David and Kathy like to take their young son, Chaz, to Moe's Southwestern Grill for lunch after church every Sunday. While they like to eat at Moe's at any time, Sunday is particularly good because it is "kids eat free" day at the restaurant
Until Moe's began this attractive offer, Sundays were very slow. Now it is one of the busiest days of the week for the restaurant. This strategy was a way to contend with the service characteristic of:
a. variability.
b. perishability.
c. intangibility.
d. inseparability.
ANSWER: b
Moe's strategy was a way to contend with the service characteristic of perishability. Perishability refers to the inability of services to be stored, inventoried, or warehoused. An empty hotel room or airplane seat produces no revenue that day.
You might also like to view...
An offer has come in for a one-time sale of 300 units at a special price of $120 per unit. The marketing manager says that the sale will not affect the company's regular sales activities, and that it will not require any variable selling and administrative costs. The production manager says that there is plenty of excess capacity and the sale will not impact fixed costs in any way. What is the effect of this deal on operating income?
Pisces Company manufactures sonars for fishing boats. Model 100 sells for $400. Pisces produces and sells 5000 units per year. Cost data are as follows:
A) Operating income increases by $400.
B) Operating income increases by $1800.
C) Operating income decreases by $6000.
D) Operating income increases by $6000.
What is the importance of title insurance in real property?
What will be an ideal response?
According to ________, the accountant is liable to any reasonably foreseeable user of the statement the accountant prepares
A) the Ultramares Doctrine B) Section 552 of the Restatement (Second) of Torts C) the reasonably foreseeable user rule D) market share theory
Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase = I Decrease = D No Effect = NA (Note that "No Effect" means that the event does not effect that element of the financial statements or that the event causes an increase in that element is offset by a decrease in that same element.)A transaction recorded as a debit to Office Supplies and a credit to Accounts Payable.Assets Liabilities Stk. Equity Revenues Expenses Net Income Stmt of Cash Flows???????
What will be an ideal response?