Services: Service means a kind of activity done by an organization to earn income. Service is intangible in nature and cannot be touched. To receive a service, one has to pay the amount charged by the service provider. Example of services are, a service provided by doctor, accountant and teacher.
Product: Product is the item that is offered for sale in ordinary course of business. A businessman earns money by selling the product demanded by the customers. Products are tangible in nature and customer has to pay an amount to purchase the product. A product may be durable or non durable. Durable products can be used for a long period, such as television, mobile phone whereas non durable product can be used only one time as there life is of very short period such as, milk, wheat, water, eatable products.
To identify: Three actual businesses that offer services and three actual businesses that offer products.
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FINANCIAL ACCT.FUND.(LOOSELEAF)
- Identify three ways that accounting systems help align thegoals of employees and the goals of the organization.arrow_forwardSegments are uniquely identifiable components of the business and can be categorized by all of the following except _______. A. products produced B. services provided C. geographical location D. number of employeesarrow_forwardExplain an example of business segment.arrow_forward
- Classify the following organization’s as professional service firms, mass service entities or service shops. In each case, explain the reason for your classification.arrow_forwardClassify the following activities as part of the identifying (I), recording (R), or communicating (C) aspectsof accounting. Measuring the costs of a productarrow_forwardIndicate whether the following financial statement items apply to a manufacturer, a merchandiser, or a service provider. Some items apply to more than one type of organization.arrow_forward
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