In Service Operations,service Production Typically Happens

question 29

Multiple Choice

In service operations,service production typically happens

• A)in anticipation of demand.
• B)well before demand.
• C)after realization of demand.
• D)before receipt of supplies.

---

Definitions:

Weighted-Average Method

An inventory costing method that calculates cost of goods sold based on the weighted average cost of all items available for sale.

Equivalent Unit

An equivalent unit is a concept used in cost accounting to denote the amount of work done on units of production expressed in terms of fully completed units, facilitating the calculation of costs in a process costing environment.

Fabricating Department

A division within a manufacturing company where raw materials are assembled or processed into finished goods.

FIFO Method

An inventory valuation method (First-In, First-Out) where the oldest items in inventory are sold or used first.