The Production of Services Typically Requires a Lower Degree of Customization

question 5

True/False

The production of services typically requires a lower degree of customization than does manufacturing.

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Definitions:

Research and Development

Activities undertaken by companies or governments in innovation and improvement of services or products.

Cost of Goods Available

The total value of inventory available for sale, consisting of beginning inventory plus purchases or production costs.

Total Manufacturing Costs

The aggregate cost of direct materials, direct labor, and manufacturing overhead incurred in producing goods.

Relevant Information

Information that is applicable to the decision-making process, having the capacity to affect or change a decision based on its pertinence and timeliness.