Capacity Management Is One of the Ways to Meet Potential

question 9

Multiple Choice

Capacity management is one of the ways to meet potential problems related to the ________ characteristic of services.

• A) intangibility
• B) perishability
• C) variability
• D) inseparability
• E) responsiveness

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Definitions:

LIFO

Last In, First Out; an inventory valuation method where the last items placed in inventory are the first ones to be used or sold.

Ending Inventory

The total value of a business’s merchandise, raw materials, and products not yet sold at the end of an accounting period.

FIFO

"First In, First Out," an inventory valuation method where goods first acquired are the first to be sold, used in accounting to calculate the cost of goods sold.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.