IBM's sales would be indicated on the statement of financial ___ and is also known as income. All products and services consist of three interdependent components: a concept, a package and a process. The concept is the ___

Question 1:
IBM's sales would be indicated on the statement of financial performance and is also known as gross income.

• a. position; gross: Incorrect. Sales are not on the statement of financial position (balance sheet).
• b. position; net: Incorrect. Sales are not on the statement of financial position.
• c. performance; net: Incorrect. Sales typically refer to gross revenue, not net income.
• d. performance; gross: Correct. Sales are reported on the income statement (statement of financial performance) and represent the total revenue before deducting costs, often referred to as gross income or gross revenue.

The correct option is d.
IBM's sales would be indicated on the statement of financial d. performance and is also known as gross income.

Question 2:
All products and services consist of three interdependent components: a concept, a package and a process. The concept is the set of expected benefits that the customer purchases.

• a. set of expected benefits that the customer purchases: Correct. The concept is the fundamental reason a customer buys a product or service – the core benefit or solution they seek.
• b. tangible or intangible object being purchased: This describes the package or the product itself.
• c. design of the processes required to manufacture the product or service: This describes the process.
• d. interaction between the customer and the business: This is part of the service delivery or customer experience, related to the process.

The correct option is a.
The concept is the a. set of expected benefits that the customer purchases.