SitRite Furniture Company uses labor and machinery to transform wood, plastic, metal and cloth into comfortable chairs, sofas, and love seats. This process creates:
A) form utility.
B) place utility.
C) use facility.
D) intangible productivity.

Question

Quizplus · Accepted Answer

The transformation of raw materials into comfortable chairs, sofas, and love seats adds form utility to the products. Form utility refers to the value or usefulness that is added to a product through the transformation process.

SitRite Furniture Company Uses Labor and Machinery to Transform Wood