The Difference Between a Good and a Service Is That

question 89

Multiple Choice

The difference between a good and a service is that:

• A)a good helps satisfy unlimited wants,but a service does not.
• B)a service helps satisfy unlimited wants,but a good does not.
• C)a service is available in unlimited quantities,but a good is not.
• D)a good is available in unlimited quantities,but a service is not.
• E)a good is tangible,but a service is not.

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Definitions:

Raw Materials

Basic materials and substances used in the production process, which are transformed into finished goods through the manufacturing process.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product, including indirect labor, materials, and expenses.

Manufacturing Cost

The total cost incurred by a company to produce a specific quantity of a product, including direct materials, direct labor, and manufacturing overhead.

Work in Process

Partially finished goods that are still in the production process at the end of an accounting period.