There Are Key Differences Between Service and Manufacturing Organizations

question 39

Multiple Choice

There are key differences between service and manufacturing organizations.Which of the following is true regarding these differences?

• A) Most service organizations cannot inventory their services to absorb fluctuations in customer demand.
• B) Most manufacturing organizations easily permit simultaneous production and consumption of system output.
• C) Most manufacturing organizations are typically located closer to the customer, such as a central business district location, due to the simultaneity of consumption and production.
• D) Service organizations can easily store current capacity in the form of inventories.

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Definitions:

Export Supply Curve

A graphical representation showing how the quantity of goods a country exports changes in response to changes in the price of those goods.

Domestic Opportunity Cost

The cost of forgoing the best alternative use of resources within a country.

Producing

The act of creating goods or services through the combination of labor, materials, and technology.