In the service sector,________ rather than machines usually represent(s)the capacity constraint,which underscores the importance of budgeting even in nonmanufacturing organizations.
A)people
B)knowledge
C)familiarity with processes
D)potential for sales

Question

Quizplus · Accepted Answer

Unlike in manufacturing organizations where machines are the capacity constraints, in service sector organizations, it is usually people who represent the capacity constraint. This is because a service organization's ability to serve customers is limited by the number of trained employees available. Therefore, budgeting becomes critical to ensure that labor costs are controlled and enough human resources are available to meet customer demand.

In the Service Sector,________ Rather Than Machines Usually Represent(s)the Capacity