Which is not true regarding differences between goods and services
A) Services are generally produced and consumed simultaneously; tangible goods are not.
B) Services tend to be more knowledge-based than goods.
C) Services tend to have a more inconsistent product definition than goods.
D) Goods tend to have higher customer interaction than services.
E) Reselling is unusual in services; goods often have some residual value.
Difference between Goods and Services
|Goods are the material items that can be seen, touched or felt and are ready for sale to the customers.||Services are amenities, facilities, benefits or help provided by other people.|
|Goods are Tangible in Nature.||Services are Intangible in Nature.|
|The ownership of Goods is transferable.||The ownership of services is non-transferable.|
|Goods can be stored for use in future or multiple use.||Services cannot be stored.|
|Goods tend to have higher customer interaction than services.||Services tend to have lower customer interaction than Goods.|
Services and goods serve as aids to the people. As a result, they are able to complete people’s needs and make sure that they do not face any difficulties in their lives. Many goods are useful to people when they perform several daily tasks or enable them to complete various tasks. People also benefit greatly from the services provided by different institutions. They make people’s lives easier and more convenient. As well as working hard to provide these services, those who deliver them work hard as well.
A company usually keeps a stock of goods with itself to meet an urgent need for goods. It also keeps track of the quantity of goods at the beginning and the end of the process. Services, on the other hand, are delivered based on the needs of the customer. To sum it up, services are produced according to the demands of the customer. Value Added Tax (VAT) is imposed on goods, whereas service tax is imposed on services.
Often, companies offer products and services in such a way that it is hard to distinguish the goods from the services, like in a restaurant where you pay for the food you eat as well as the services of the waiters, chef, watchman, etc.