mhzperfect
24.10.2021 •
Business
Assume the same information for 2021 and 2022, but that as of year-end 2022 the estimated cost to complete the office building is $9,000,000. Citation recognizes revenue over time according to percentage of completion for its office building contracts. How much revenue related to this contract will Citation report in the 2022 income statement
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Ответ:
Perishability of services
Explanation:
Perishability is the term used by marketers to describe the inability of services to be stored, returned, resold , or saved once a customer is gone. Unlike products, services are intangible. They can be touched as they do not have a physical presence.
The term perishable implies short-lived. It means services cannot be preserved for future consumption. Once a customer has consumed a service, that service is completely rendered; there is no reversing or alterations. Services are short-lived in a sense they are assigned to be delivered as specific duration. For this restaurant, if the manager is unable to sell the 50 rooms for that night, he cannot preserve that service for another day.