Which of the Following Statements Regarding Control of Service Inventories

question 133

Multiple Choice

Which of the following statements regarding control of service inventories is true?

• A) Service inventory is a fictional concept, because services are intangible.
• B) Service inventory needs no safety stock, because there's no such thing as a service stockout.
• C) Effective control of all goods leaving the facility is one applicable technique.
• D) Service inventory has carrying costs but no setup costs.
• E) Good personnel selection, training, and discipline are easy.

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Definitions:

Costs Change

Alterations in the financial expenditures associated with producing or obtaining goods and services.

Indirect Costs

Costs that are not directly accountable to a cost object, such as overhead and administrative expenses.

Production Plant

A facility where goods are manufactured or assembled, using labor and machinery.

Given Unit

A specific quantity or measure that serves as a standard or reference for tasks or calculations in various contexts.