The Difference Between a Product and a Service Is That

question 1

True/False

The difference between a product and a service is that a product is a bundle of output while a service is a bundle of supplementary services.

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Definitions:

Absorption Costing

A financial recording technique that entails incorporating all costs associated with manufacturing, whether they are fixed or variable, into the product's pricing.

Selling Price

The amount of money charged for a product or service, typically enough to cover costs and generate profit.

Required Return

The expected gain or loss on an investment over a specified period, factoring in both the risk and the time value of money.

Absorption Costing

A method of costing that includes all manufacturing costs – direct materials, direct labor, and both variable and fixed overhead – in the cost of a product.