Question

The primary difference between manufacturing companies and service companies is that the products provided by service companies are consumed_________________-

Answer 1

Answer:

The products by services companies are consumed immediately.

Explanation:

Goods are physical tangible products that are used to satisfy human needs and wants. On the other hand, services are non-physical, nontangible products that also serve the purpose of satisfying human needs and wants.  

The manufactured good can be stored in inventories after production, however, the services are consumed as they are produced. They cannot be stored in inventories to be consumed later. They have to be consumed immediately.  

This is the main difference between the products of manufacturing companies and services companies.