The Production of Services Differs from Manufacturing as Services

question 38

Multiple Choice

The production of services differs from manufacturing as services:

• A)can be inspected prior to delivery.
• B)require lesser customization compared to manufactured goods.
• C)produce outputs that are mostly intangible.
• D)are less labor intensive and involve minimal human interaction.

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Definitions:

Wages Expense

The total amount of wages paid by a business to its employees for a specified period of time.

Accounts Receivable

Money owed to a business by its customers for goods or services provided on credit.

Generally Accepted Accounting Principles

A set of accounting standards and procedures adopted in the U.S. that guide how financial statements are prepared and reported.

Correcting Entries

Entries made in a journal to correct mistakes or inaccuracies found in the financial statements or ledgers after they have been posted.