The Basic Difference Between a Good and a Service Is

question 86

Multiple Choice

The basic difference between a good and a service is that a good

• A)provides intangible benefits.
• B)can be physically touched.
• C)is always less expensive than a corresponding service.
• D)generates greater interest among consumers.
• E)is more quickly forgotten by consumers.

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Definitions:

Overapplied Overhead

A situation where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred.

Underapplied Overhead

A situation where the allocated manufacturing overhead cost is less than the actual overhead cost incurred.

Direct Materials Cost

The cost associated with the raw materials that are directly used in the production of a product.

Direct Labor

Workers actively engaged in manufacturing products or providing services, whose labor directly contributes to output.