Perishability, in the context of services, means:

• A. It cannot be stored or worked on over time
• B. It can be inventoried for future sale
• C. It has a fixed physical form
• D. It is a durable asset

Answer: (A)

Perishability in services means the opportunity to deliver the service exists only for a limited time and cannot be saved for later sale or use. Because services are produced and consumed at the point of contact and are intangible, they cannot be stored or carried over to another period. If a slot, such as a hotel night or a flight seat, isn’t used when it’s available, that capacity is wasted and cannot be inventoried or produced later.

This is why the statement “it cannot be stored or worked on over time” best captures perishability. The other ideas describe attributes of physical goods (having a fixed physical form, being durable) or the notion of inventory for future sale, which do not apply to services.