Why Is It Generally Harder for Service Industry Managers to Cope

question 6

Multiple Choice

Why is it generally harder for service industry managers to cope with peaks and troughs in demand for their products?

• A) Services are inconsistent
• B) There are no salespeople to help with forecasting
• C) Payment is usually made after the service has been provided
• D) Most service customers are not brand loyal
• E) Service products cannot usually be stored

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Definitions:

Perpetual Inventory System

The perpetual inventory system is a method of accounting for inventory that records sales and purchases instantly through computer systems, maintaining continuous balance updates.

LIFO

LIFO (Last In, First Out) is an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Cost of Goods Sold

Expenses directly related to manufacturing the products a company sells, involving costs of materials and labor.

Perpetual Inventory System

An inventory management system that keeps continuous, real-time records of goods as they are received and sold.