Because Services Cannot Be Stored for Later Use, Service Managers

question 32

True/False

Because services cannot be stored for later use, service managers consider time as one of their supplies or resources.

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Definitions:

Average Inventory

A means of measuring the approximate amount of inventory a company holds over a certain period, aiming to balance holding costs against stockout risks.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, interest, tax, and other expenses.

Ending Inventory

The total value of all inventory still available for sale at the end of an accounting period.

Income Statement

An Income Statement is a financial statement that shows a company's revenues and expenses over a specified period, culminating in net profit or loss.