Question

Which group of activities below is ranked from the LOWEST cost of inventory to HIGHEST cost of inventory?

A hair salon - dry cleaner - insurance company Correct Answer Incorrect Answer
B hotel - airline - amusement park Correct Answer Incorrect Answer
C auto repair centre - hotel- hospital Correct Answer Incorrect Answer
D auto repair centre - dry cleaner - insurance company Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Inventory of services is different from that of goods. For example, if a physician is available to see patients the inventory cost is the physician's salary and the cost of medical equipment available for the physician's use.

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