Service organizations ________.
A) produce physical and nonphysical outputs
B) produce physical outputs only
C) require nonphysical inputs only
D) produce nonphysical outputs only

Question

Quizplus · Accepted Answer

D) Service organizations produce service, a nonphysical product or output, making "produce nonphysical outputs only" the correct response. Manufacturing organizations are the organizations that produce physical, material products, which rules out "produce physical and nonphysical outputs" as well as "produce physical outputs only." While service organizations produce nonphysical products, they do not necessarily require nonphysical inputs. Such things as information and effort are inputs that are routinely used to create service as an output, for example.

Service Organizations ________