(a) Features of Services are as follows :
1. Services are intangible as they cannot be seen or touched. They have no physical shape.
2. Services are produced and consumed at the same time. The service cannot be separated from the service provider.
(b) Indirect expenses are those expenses which cannot be wholly and directly identified with specific product or job. For example : Rent, lighting, insurance charges, depreciation etc.
(c) Advantages of Cost plus pricing are :
1. Cost plus pricing ensures full coverage of costs and helps in achieving a reasonable return on capital employed.
2. This is most widely used technique of pricing and safe approach.
3. It discourage cut-throat competition in the market.
