Inventory of services differs from that of products in what way?
A)Time is less important to customers of services than customers of products.
B)Only service inventory can be reduced through more efficient movement of products.
C)There are larger costs associated with the handling of service inventory.
D)Unlike goods providers, the service provider is often unavailable when there is a demand for the service.
E)Service inventory costs are related to idle production capacity rather than storage or handling.

Question

Quizplus · Accepted Answer

Service inventory costs are related to idle production capacity rather than storage or handling. This means that the cost of service inventory is associated with the cost of keeping staff and equipment available to provide the service, even if there is no immediate demand for the service. In contrast, the cost of holding product inventory is less related to production capacity and more related to storage and handling costs.

Inventory of Services Differs from That of Products in What