Which of the following is not a distinctive characteristic of a service organization?
A) Outputs lack physical qualities.
B) Inventories of finished products cannot be stockpiled.
C) Inventories of finished products can be stockpiled.
D) Production and consumption are simultaneous.
E) Quality is very difficult to access.

Question

Quizplus · Accepted Answer

Service organizations cannot stockpile their outputs as services are intangible and perishable. This means that services cannot be stored for later use or sale, distinguishing them from goods-producing organizations that can maintain inventories of physical products.

Which of the Following Is Not a Distinctive Characteristic of a Service