Which of the Following Is Not True When Explaining Why

question 134

Multiple Choice

Which of the following is not true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector?

• A) Services are typically labour-intensive.
• B) Services are often difficult to evaluate for quality.
• C) Services are often an intellectual task performed by professionals.
• D) Services are difficult to automate.
• E) Service operations are typically capital intensive.

---

Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.

Overstated

A term used to describe financial statements that report a value or condition as being higher than it actually is.

Understated

Refers to figures or amounts that have been reported lower than they actually are, often affecting financial statements and analysis.

Lower-of-Cost

A principle that dictates inventory should be recorded at either its original cost or the market value, whichever is lower, to avoid overstating assets.