Why are inventory of services different from that of products?
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 a service provider needs to be available to provide their service, and if they have idle capacity, they are essentially losing potential revenue. Therefore, the inventory of services is different from that of products, where storage and handling costs may play a larger role.

Why Are Inventory of Services Different from That of Products