For many types of service organizations such as hospitals, hotels, and airlines, the primary cost of operations is
A) establishing and maintaining a presence on the Internet.
B) insurance and legal expenses.
C) coping with obsolescence that results from the rapid pace of technological change.
D) compensation of labor.

Question

Quizplus · Accepted Answer

Labor compensation is the primary cost of operations for service organizations such as hospitals, hotels, and airlines. This is because they rely heavily on skilled and knowledgeable employees to provide quality services to their customers, and labor costs make up a significant portion of their operating expenses.

For Many Types of Service Organizations Such as Hospitals, Hotels