Why Are Inventory of Services Different from That of Goods

question 169

Multiple Choice

Why are inventory of services different from that of goods?

• A)Time is less important to customers of services than customers of goods.
• 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.

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Definitions:

Period

A length or portion of time in which events, processes, or conditions exist or take place.

Federal Income Tax Rates

A schedule of rates set by the government applied to the taxable income of individuals, corporations, and other entities.

Wealth Concentration

The scenario where a small percentage of people or entities hold a large portion of total wealth in a society.

Income Distribution

Refers to how a country’s total GDP is spread amongst its population, affecting economic equality and citizens' standard of living.