Service Vs Product Accounting Question 2022

Running head: SERVICE vs. PRODUCT ACCOUNTING
SERVICE vs. PRODUCT ACCOUNTING
Name of Student
Name of University
Author’s Note

SERVICE vs. PRODUCT ACCOUNTING1
Table of Contents
QUESTION 1:.....................................................................................................................2
QUESTION 2:.....................................................................................................................5
QUESTION 3:.....................................................................................................................6
QUESTION 4:.....................................................................................................................7
REFERENCES:...................................................................................................................9

SERVICE vs. PRODUCT ACCOUNTING2
QUESTION 1:
Industry is the group of companies that are related with the primary business activities.
This means that the individual organizations are classified under different types of industries. For
example, a car making companies like Lamborghini, Ferrari or Mercedes comes under the
manufacturing industry. On the other hand, companies that deal with financial products like bank
come under service industry (Pérez et al 2017). There are total three types of industries. They are
service industry, merchandising industry and manufacturing industry. All these industries deal
with different types of products and services (Gadipelly et al 2014). The companies working
under these industries have different sets of products or services to offer to the end customers,
but overall family of the products and services that these companies are same.
The different types of industries are explained and compared below:
SERVICE INDUSTRY
1. Service industry is
considered as highly
perishable. The time
has great significance
in service industry.
The use of proper
service in proper time
decides the company’s
sustainability in the
market (Michaudel,
MANUFACTURING
INDUSTRY
1. Manufacturing
industry revolves
around higher costs.
All manufacturing
companies depend on
the balancing
efficiency. The balance
efficiency with the
productivity assists the
MERCHANDISING
INDUSTRY
1. The significance of
recognizing proper
channel in the
merchandising
industry is immense.
The merchandising
companies needs to
create and implement
strategy at every stage

SERVICE vs. PRODUCT ACCOUNTING3
Ishihara and Baran
2015).
2. The service products
are all intangible
products, so no
physical storage is
required in this
industry.
3. Service industry has
high degree of demand
fluctuations. The
demand in this
industry changes
according to the season
or according to the
need of the end
customers.
4. The service of any
company cannot be
separated from
individual. For
example, a haircut is
not possible without
company to earn profit
from the market.
2. The quality control is
one of the most
important aspects of
the manufacturing
industry. In order to
maintain the customer
satisfaction the
manufacturing
companies needs to
increase the quality of
the product.
3. Another major aspect
in the manufacturing
industry is the
designing of the
product. The design of
the product assists the
manufacturing
companies to get
achieves more sales.
4. The cost that
of the marketing.
2. The review of plan for
every stage is very
important for any
company that comes
under the
merchandising
industry.
3. In order to create
greater purchasing
power the companies
of merchandising
industry consolidate
purchasing across
channels.
4. The information
regarding the customer
experience is very
important for the
merchandising
companies.
5. Wal-Mart is the best
example for the