Which of the Following Statements About Operations Management in the Service

question 228

Multiple Choice

Which of the following statements about operations management in the service sector is most accurate? Operations management in the service sector:

• A) is all about providing the service at the lowest cost.
• B) should focus on providing customers with a good experience.
• C) has less flexibility than operations management in the manufacturing sector, because services are not technology driven.
• D) has done a good job of increasing output, but a poor job of improving quality.

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Definitions:

Variable Cost Estimates

Projections or assessments of costs that change in proportion with the level of production or activity in a business.

Facility Expenses

Costs associated with the physical space a business uses, including rent, utilities, and maintenance.

Tenant-Days

A metric used in the property management industry, representing the total number of days all tenants occupy a space.

Flexible Budget

A financial strategy that evolves in line with shifts in activity intensity or operational volume.