Principles of Operations Management: Sustainability and Supply Chain Management 10th Global Edition

Diff: 1
LO:  1.2 Explain the distinction between goods and services
61) Which of the following is the best example of a pure service?
A) counseling
B) oil change
C) heart transplant
D) electric co-op
E) restaurant
Answer:  A
Diff: 2
Key Term:  Services
LO:  1.2 Explain the distinction between goods and services
 
62) The service sector makes up approximately what percentage of all jobs in the United States?
A) 12%
B) 40%
C) 66%
D) 86%
E) 94%
Answer:  D
Diff: 2
Key Term:  Service sector
LO:  1.2 Explain the distinction between goods and services
 
63) Which is NOT true regarding differences between goods and services?
A) Tangible goods are generally produced and consumed simultaneously; services are not.
B) Most goods are common to many customers; services are often unique to the final customer.
C) Services tend to have a more inconsistent product definition than goods.
D) Services tend to have higher customer interaction than goods.
E) None, i.e., all of the above are true.
Answer:  A
Diff: 2
Key Term:  Services
LO:  1.2 Explain the distinction between goods and services
 

64) Which is NOT true regarding differences between goods and services?
A) Services are generally produced and consumed simultaneously; tangible goods are not.
B) Services tend to be more knowledge-based than goods.
C) Services tend to have a more inconsistent product definition than goods.
D) Goods tend to have higher customer interaction than services.
E) Reselling is unusual in services; goods often have some residual value.
Answer:  D
Diff: 2
Key Term:  Services
LO:  1.2 Explain the distinction between goods and services
65) Which of the following services is LEAST likely to be unique, i.e., customized to a particular individual's needs?
A) dental care
B) hairdressing
C) legal services
D) elementary education
E) computer consulting
Answer:  D
Diff: 2
Key Term:  Services
AACSB:  Reflective thinking
LO:  1.2 Explain the distinction between goods and services
 
66) Which of the following is NOT a typical service attribute?
A) intangible product
B) easy to store
C) customer interaction is high
D) simultaneous production and consumption
E) difficult to resell
Answer:  B
Diff: 2
Key Term:  Services
LO:  1.2 Explain the distinction between goods and services
 
67) Which of the following attributes is most typical of a service?
A) production and consumption occur simultaneously
B) tangible
C) mass production
D) consistency
E) easy to automate
Answer:  A
Diff: 2
Key Term:  Services
LO:  1.2 Explain the distinction between goods and services
 

68) Which of the following is a similarity between goods and services?
A) mass production
B) consistency
C) automation
D) Both have quality standards.
E) Both can usually be kept in inventory.
Answer:  D
Diff: 2
Key Term:  Services
LO:  1.2 Explain the distinction between goods and services
 
69) When a tangible component is not included in a service, such as with counseling, it is called a(n) ________.
Answer:  pure service
Diff: 1
Key Term:  Services
LO:  1.2 Explain the distinction between goods and services
70) How do services differ from goods? Identify five ways.
Answer:  Pick from the following: a service is usually intangible; it is often produced and consumed simultaneously; it is often unique; it involves high customer interaction; product definition is inconsistent; it is often knowledge-based; it is frequently dispersed; quality may be hard to evaluate; and reselling is unusual.
Diff: 2
Key Term:  Services
LO:  1.2 Explain the distinction between goods and services
 
71) Productivity is generally more difficult to improve in the service sector than in the manufacturing sector.
Answer:  TRUE
Diff: 2
Key Term:  Productivity
LO:  1.3 Explain the difference between production and productivity
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization
 
72) A knowledge society is one that has migrated from work based on knowledge to one based on manual work.
Answer:  FALSE
Diff: 1
Key Term:  Knowledge society
LO:  1.2 Explain the distinction between goods and services
Learning Outcome:  Discuss operations and operations management as a competitive advantage for the organization