How Is Inventory of Services Different from That of Products

question 104

Multiple Choice

How is inventory of services different from that of products?

• A) Time is less important to customers of services than customers of products.
• B) Only service inventory can be reduced through more efficient movement of products.
• C) There are larger costs associated with the handling of service inventory.
• D) Unlike goods providers, the service provider is often unavailable when there is a demand for the service.
• E) Service inventory costs are related to idle production capacity rather than storage or perishability.

Prepare the cost of goods manufactured schedule.

Classify different types of costs and expenses for financial reporting.

Compute the total manufacturing costs using given data.

Prepare the current assets section of the balance sheet for a given company.

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Definitions:

Written Agreement

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Terms of Payment

The conditions under which a seller will complete a sale, typically specifying the period allowed to a buyer to pay for the goods or services received.

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The act of making distinctions or differentiating between objects, subjects, or concepts.