1. describe how manufacturing and service firms differ. course hero

How do manufacturing merchandising and service sector companies differ from one another?

Describe how manufacturing-, merchandising-, and service-sector companies differ from one another. Manufacturing Companies make their products on their own. Merchandising companies does not manufacture products on their own rather they but them from other dealers. Service sector Companies Neither make Products not buy them from outside.

What are the different types of manufacturing sector companies?

Manufacturing-sector companies include automotive companies and food companies, merchandising-sector companies include retail stores and distribution companies, and service-sector companies include legal firms, travel agencies and insurance companies d.

What should manufacturing firms consider in their cost of goods manufactured?

One thing manufacturing firms must consider in their cost of goods manufactured is that, at any given time, they have products at varying levels of production: some are finished and others are still process.

What is the difference between merchandising and manufacturing income statements?

Figure 2.7 shows a simplification of the income statement for a manufacturing firm: At first it appears that there is no difference between the income statements of the merchandising firm and the manufacturing firm. However, the difference is in how these two types of firms account for the cost of goods sold.

How do service and manufacturing firms differ?

The key difference between service firms and manufacturers is the tangibility of their output. The output of a service firm, such as consultancy, training or maintenance, for example, is intangible. Manufacturers produce physical goods that customers can see and touch.

What are the main differences between manufacturing and service operations?

While manufacturing operations focus on producing goods and storing them at a warehouse before delivering them to customers, service-providing operations facilitate simultaneous production and consumption of services.

What is the difference between a manufacturing business a service business and a marketing intermediary?

What is the difference between a manufacturing business, a service business, and a marketing intermediary? Manufacturing businesses process various materials into tangible goods. Service businesses produce services. Marketing intermediaries buy products from manufacturers and then resell them.

What is manufacturing and service operation?

The Manufacturing & Service Operations certification track provides a key element of the operations organization in a company. It is chartered to provide and manage resources and to convert raw materials into finished products.

What is the difference between a manufacturing and a service economy?

A manufactur- ing economy is driven by the mass production of products [4], whereas a service economy is based on knowledge- intensive industries and services in economic production, well-educated workers in the occupational market, and innovating firms in business [5].

What is the relationship between services and manufacturing?

Services have enabled manufacturers to take advantage of cutting edge technologies and become more productive. Services have also enabled manufacturers to grow the value of their operations from the initial stage of designing their products to the final stage of getting their products to their customers.

How are manufacturing companies and service companies alike quizlet?

How are manufacturing companies and service companies alike? They both have labor, material, and overhead costs.

What is the difference between manufacturing and trading business activities?

In manufacturing business you have to manufactured products for your client and in trading business you need to purchase manufactured product from manufacturing company and sell it to customer directly.

What's a manufacturing company?

A manufacturing business is any business that uses raw materials, parts, and components to assemble finished goods.

What are the similarity between service and manufacturing industries?

The similarities between manufacturing and service operations are given the following: Manufacturers do not just offer products, and service organizations do not just offer services. Both types of organizations normally provide a package of goods services.

Why are services and manufacturing important?

The service sector now accounts for more than 70% of jobs in the U.S. and that figure continues to increase. Manufacturing is important because it supplies a large proportion of exports and many service jobs are dependent on manufacturing because they support manufacturing.

What is a similarity between manufacturers and service providers?

Similarities between service providers and manufacturers. Both must design and operate business decisions. Most of the time service providers and manufacturers are intertwined in a business making them work together frequently. Standardization. The making of identical interchangeable components or products.

Which of the following is a difference between manufacturers and service providers?

Manufacturers implies a firm that makes tangible goods. While service providers produces more tangible outputs such as U.S postal service.

Which is not significant difference between manufacturing and service operations?

The answer is (e) Cost per unit. Manufacturing and service operations both account for the cost for each unit.

What are the fundamental differences between services and manufacturing quizlet?

It is important to distinguish between services and manufacturing because they have three fundamental differences: the nature of their output - tangible vs. intangible, the degree of customer contact and co-production, and simultaneous production and consumption.

What are the similarities between manufacturing and service operations?

Similarities between Manufacturing and Service Both types of organizations normally provide a package of goods services. Generally, service organization cannot inventory their outputs, but manufacturing firms that make customized product also cannot inventory their output.

Why are merchandising firms so cost sensitive?

Since merchandising firms must pass the cost of goods on to the consumer to earn a profit, they are extremely cost sensitive. Large merchandising businesses like Walmart, Target, and Best Buy manage costs by buying in bulk and negotiating with manufacturers and suppliers to drive the per-unit cost.

How does a manufacturing company calculate the cost of goods sold?

Unlike merchandising firms, manufacturing firms must calculate their cost of goods sold based on how much they manufacture and how much it costs them to manufacture those goods. This requires manufacturing firms to prepare an additional statement before they can prepare their income statement. This additional statement is the Cost of Goods Manufactured statement. Once the cost of goods manufactured is calculated, the cost is then incorporated into the manufacturing firm’s income statement to calculate its cost of goods sold.

How do merchandising firms determine their cost of goods sold?

Merchandising firms determine their cost of goods sold by accounting for both existing inventory and new purchases, as shown in the Plum Crazy example. It is typically easy for merchandising firms to calculate their costs because they know exactly what they paid for their merchandise.

What is Figure 2.8?

Figure 2.8 is an example of the calculation of the Cost of Goods Manufactured for Koeller Manufacturing. It demonstrates the relationship between cost of goods manufactured and cost of goods in progress and includes the three main types of manufacturing costs.

What are the three categories of businesses?

Index. Most businesses can be classified into one or more of these three categories: manufacturing, merchandising, or service. Stated in broad terms, manufacturing firms typically produce a product that is then sold to a merchandising entity (a retailer) For example, Proctor and Gamble produces a variety of shampoos that it sells to retailers, ...

Why are manufacturing costs carefully tracked?

All of these costs are carefully tracked and classified because the cost of manufacturing is a vital component of the schedule of cost of goods sold. To continue with the example, Koeller Manufacturing calculated that the cost of goods manufactured was $95,000, which is carried through to the Schedule of Cost of Goods Sold ( Figure 2.9 ).

What is Facebook's strategic plan?

Facebook’s strategic plan may focus on increasing subscribers and attracting new advertisers. An accounting firm may have long-term goals to open offices in neighboring cities in order to serve more clients.