The inventory costs for airlines is high because they
A) use a straight salary compensation plan for the large numbers of flight attendants.
B) have high-salaried pilots and very expensive equipment.
C) allow baggage personnel to work overtime.
D) decrease the number of workdays per week, but increase the hours per day.
E) use a commission compensation system for their reservationists.

Question

Quizplus · Accepted Answer

Airlines have high inventory costs primarily due to the high salaries of pilots and the significant expenses associated with maintaining and operating their aircraft, which are very costly pieces of equipment.

The Inventory Costs for Airlines Is High Because They