Productivity Tends to Be More Difficult to Improve in the Service

question 98

Multiple Choice

Productivity tends to be more difficult to improve in the service sector because the work is:

• A)often difficult to automate.
• B)typically labor-intensive.
• C)frequently processed individually.
• D)often an intellectual task performed by professionals.
• E)All of the above make service productivity more difficult.

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Definitions:

Physical Inventory

The process of counting and verifying the actual quantities of physical merchandise or assets present in a store or warehouse.

Inventory Costing Methods

Inventory costing methods are accounting principles used to value inventory, including first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average cost.

Net Income

A company's remaining earnings after deducting all expenses and taxes from its revenue.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold.