Cost-Based Pricing for Services Challenges

Workforce turnover is low in most service industries, making cost estimation easier.

The cost of goods sold is a small or nonexistent portion of the total cost for intangible products. (correct)

It is easier to forecast labor needs accurately in service settings compared to tangible product settings.

Finding good personnel is not an ongoing challenge in service industries.

Ease of finding good personnel

Fluctuating demand in service settings (correct)

Stable workforce turnover in service industries

High percentage of cost of goods sold in service industry

Low workforce turnover and ease of finding good personnel

Stable labor needs and fluctuating demand

High workforce turnover and difficulty in finding good personnel (correct)

High percentage of cost of goods sold in service industry

<p>The small or nonexistent portion of the total cost that is attributed to cost of goods sold for intangible products</p> Signup and view all the answers