ACC 305 Exam 2 (A+ Graded Already)

involves combining direct materials, direct labor, and overhead to make a product correct answers manufacturing When is a product tangible? correct answers When it can be inventoried and shipped to the customer What are the characteristics of a service? correct answers -intangible nature -not separable from the customer -can't be inventoried -heterogeneity What is an example of a pure service? correct answers Internet cafe -no raw materials -no tangible item What is an example of a service leaning product? correct answers Beauty salon -some direct materials (hair spray, gel) -no tangible items What is an example of a manufactured leaning product? correct answers Restaurant software -some direct materials (food, computer chips) -some tangible items -some service What is an example of a manufactured product? correct answers Automobiles -raw materials -tangible items -some service _______ has become increasingly service-oriented correct answers economy Managers must be able to _____ the costs of services rendered just as precisely as they tracked the costs of goods manufactured correct answers track What relationship to business does inseparability have? correct answers -consumer is involved in service process -services are difficult to mass produce What impact on cost management system does inseparability have? correct answers -costs are account for by customer type -system must be generated to encourage consistent quality What relationship to business does intangibility have? correct answers -services can't be stored -cant be patented