What Are Services

question 103

Multiple Choice

What are services?

• A) Material items or products that customers will buy to satisfy a want or need
• B) Tasks performed by people that customers will buy to satisfy a want or need
• C) The process where a business takes raw materials and processes them or converts them into a finished product for its goods or services
• D) The rate at which goods and services are produced based upon total output given total inputs

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Definitions:

Useful Life

The estimated duration a fixed asset is expected to be economically useful to an organization.

Capitalized

Refers to recording an expense or cost as an asset on the balance sheet, rather than as an expense on the income statement, to spread out the expense over its useful life.

Long-Lived Assets

These are tangible or intangible assets that a company expects to use for more than one year, including property, plant, and equipment.

Economic Benefits

The gains derived from actions or decisions, typically measured in terms of revenue or income generated or costs saved.