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.

---

Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, providing insights into its operational efficiency and financial health.

Consolidated Net Income

The total amount of net income earned by a parent company and its subsidiaries, presented as a single figure after eliminating inter-company transactions.

Bonds Payable

Long-term debts issued by corporations or governmental units, represented by formal certificates obligating the issuer to pay interest and repay principal at a specified maturity date.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit, typically shown as an expense on the income statement.