Question

One of the main differences between service companies and manufacturers is that:

Answer 1

One must account for inventory, the other does not.

What are service companies?

A service company is one that makes revenue by simply offering its time and expertise to customers. In other words, they render out, perform certain tasks, or provide certain things in exchange for money. For example, a company that rents cars is a service rendering company.

What are manufacturers?

Manufacturers, unlike service companies, make their revenue by selling goods to their customers. In other to do this, they must constantly take note of their inventory (i.e list of goods in stock). This feature of manufacturers makes them different from service companies and manufacturers.

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