Cost management for services:
A)is confined to internal demand analysis and consumption management.
B)is confined to supplier cost structure analysis.
C)includes demand management and supplier cost structure analysis.
D)focuses primarily on better design of the service.
E)is only possible when the service is highly tangible.

Question

Quizplus · Accepted Answer

Cost management for services should not only focus on supplier cost structure analysis but also on demand management. Service providers need to understand customer demand and how it is influencing the cost of the service. Therefore, the best choice is C, which includes demand management and supplier cost structure analysis. The other options are not comprehensive enough and do not cover all aspects of cost management for services.

Cost Management for Services