AOS 3: Manufacturing and Service Business

Question 1

Characteristics of a manufacturing business

Answer 1

• Produce tangible goods
• Can be stored for later use
• Little customer involvement in production
• Process and consumption are not linked

Question 2

Characteristics of a service business

Answer 2

• Produce intangible service
• Can not be stored for later use
• More customer involvement in production
• Process and consumption are simultaneously

Question 3

Similarities of manufacturing and service business

Answer 3

• Both involve the overseeing of an operation system
• Both use an operation system comprising of three elements (Inputs, Processes, Outputs)
• Both produce an output which is sold for money