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Multiple Choice
Perishability is the characteristic of a service that __________.
A
can be inventoried and resold
B
cannot be stored for later use or sale
C
is always tangible
D
can be easily separated from its provider
Verified step by step guidance
1
Understand the concept of perishability in the context of services. Perishability refers to the fact that services cannot be stored or saved for future use, unlike physical goods.
Recall that goods can often be inventoried, meaning they can be produced, stored, and sold later. Services, however, are produced and consumed simultaneously, so they cannot be inventoried.
Analyze each option: 'can be inventoried and resold' contradicts perishability because perishability means the service cannot be stored.
'Is always tangible' is incorrect because services are typically intangible.
'Can be easily separated from its provider' is also incorrect because many services are inseparable from the provider. Therefore, the correct understanding is that perishability means the service cannot be stored for later use or sale.