Before Moving Out of Their Apartment, Nayma and Jake Decided

question 77

Multiple Choice

Before moving out of their apartment, Nayma and Jake decided to have their carpets cleaned by Stanley Steemer, a company specializing in professional carpet cleaning. The carpet cleaners arrived on time, cleaned the carpets, and drove away in their bright yellow van; only then did the couple see that they did a good job. Nayma and Jake were unable to judge the service before they bought it, which illustrates the ________ of services.

• A) inconsistency
• B) inseparability
• C) inventory costs
• D) intangibility
• E) interdependence

---

Definitions:

Shortage Costs

Costs incurred by a business when the demand for its products exceeds its supply, often leading to lost sales and customer dissatisfaction.

Short-term Financial Policy

Guidelines or strategies focused on managing a company's current assets and liabilities to ensure short-term operational needs are met.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and opportunity cost of tied-up capital.

Shortage Costs

Costs incurred from not having enough inventory on hand, including lost sales and emergency shipping expenses.