Question

For many types of service organizations such as hospitals, banks and airlines, the primary cost of operations is:

Answer 1

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Labour costs.

b) Coping with obsolescence that results from the rapid pace of technological change.

c) Insurance and legal expenses.

d) Establishing and maintaining a presence on the Internet.

And the correct answer is the option A: Labour costs.

Explanation:

To begin with, most of those organizations that work in the services industry tend to have not so many costs as the ones that work for the production industry where the companies have to deal with so many commodities, materials and more. Therefore that, althought that the services companies still have to deal with marketing expenses like publicity and others like insuraces, the most important cost for the companies in the services industry are the labour costs due the big amount of employees that those kind of companies hire in the market.