One major problem in measuring the productivity of a service organization is the absence of:
A) Overhead costs.
B) A common measure for its outputs.
C) Mandatory financial reporting.
D) Materials costs.

Question

Quizplus · Accepted Answer

Measuring the productivity of a service organization can be challenging as there may not be a common measure for its outputs. Unlike manufacturing where the output can be quantified, service outputs are intangible and can vary by customer, making it difficult to set a common measure.

One Major Problem in Measuring the Productivity of a Service