Since labor and other costs greatly exceed outlays for purchased materials and services in most service organizations,supply is of little consequence in most service organizations.

Question

Quizplus · Accepted Answer

While labor and other costs may indeed exceed outlays for purchased materials and services in service organizations, supply is still important. Service organizations may still rely on physical goods such as office supplies, equipment, or inventory for resale. Additionally, the quality and reliability of the materials and services they do purchase can have an impact on the overall quality of their services.

Since Labor and Other Costs Greatly Exceed Outlays for Purchased