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.

Trending nowThis is a popular solution!

Chapter 1 Solutions
Financial and Managerial Accounting (Looseleaf) (Custom Package)
- Could you help me solve this financial accounting question using appropriate calculation techniques?arrow_forwardMatsuno Technology, Inc. sells market research reports for Asian markets. Its credit terms are 3/10, net 45. Based on experience, 70 percent of all customers will take the discount. What is the average collection period? (Do not round intermediate calculations)arrow_forwardI am searching for the accurate solution to this financial accounting problem with the right approach.arrow_forward
- Uzo Industries estimated that machine hours for the year would be 30,000 hours and overhead (all fixed) would be $150,000. Uzo applies its overhead on the basis of machine hours. During the year, all overhead costs were exactly as planned ($150,000). There was $22,500 in over-applied overhead. How many machine-hours were worked during the period?arrow_forwardContinental Manufacturing uses a standard cost system in which manufacturing overhead is applied to units of product based on standard direct labor hours. During April, the company used a denominator activity of 40,000 direct labor hours in computing its predetermined overhead rate. However, 42,000 standard direct labor hours were allowed for the month's actual production. If the fixed manufacturing overhead volume variance for April was $4,000 favorable, then the total budgeted fixed manufacturing overhead cost for the month was $_.arrow_forwardWhat was the total cost incurred in November?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





