The emergency room staff in Houston's largest hospital is pleasantly surprised when a four-day Fourth of July weekend brings in few accident victims for treatment.They know from experience that such public holidays usually have high rates of accidents.For the hospital's business office,the lower demand for the emergency room services means
A)a break in the service continuum.
B)its services are no longer tangible.
C)its services can be separated from the staff.
D)the hospital has idle production capacity.
E)an opportunity for gap analysis.

Question

Quizplus · Accepted Answer

The inventory cost of service is the cost of paying the people used to provide the service along with any needed equipment.With services,inventory carrying costs are related to idle production capacity,which is when the service provider is available but there is no demand for the service.

The Emergency Room Staff in Houston's Largest Hospital Is Pleasantly