Why Is Inventory of Services Different from That of Products

question 219

Multiple Choice

Why is inventory of services different from that of products?

• A) Time is less important to customers of services than customers of products.
• B) Only service inventory can be reduced through more efficient movement of products.
• C) There are larger costs associated with the handling of service inventory.
• D) Unlike goods providers, the service provider is often unavailable when there is a demand for the service.
• E) Service inventory costs are related to idle production capacity rather than storage or perishability.

---

Definitions:

Total Liabilities

The sum of all financial obligations and debts owed by a company to external entities or individuals.

Total Assets

The cumulative value of all resources owned by a company, including cash, inventory, property, and equipment.

New Computer

A recent purchase or acquisition of a computing device for personal or business use.