There are two types of output:1) Tangible Products: goods produced by changing the raw materials through the use of labor and capital input.Examples: Clothing, home furnishings, cars, computers, etc..
2) Services: The task or activity conducted for a facility using the product or organization.Example: Protection insurance, health care, dental care, public transport, etc..
On the differences Services Tangible Products:1. intangible (intangibility)Service buyers can not see, feel, hear, or try a service before the services are purchased.2. Not durable (perishability)Services can not be stored for future use by the customer.3. Can not be separated (inseparability)Producers and buyers of services must usually be in direct contact during the exchange.4. Heterogeneity (heterogenity)There is a greater chance variations in the implementation of services in product production.
Production CostsProduction costs are costs associated with the production of goods and service provision.
Klasiifikasi Production Costs1. Direct Materials: The cost of raw materials needed for the direct or materials for production. The cost of this material can be directly charged to the product.2. Direct Labor: The cost required for direct labor in the production process.3. Overhead: All production costs other than direct materials and direct labor.
2) Services: The task or activity conducted for a facility using the product or organization.Example: Protection insurance, health care, dental care, public transport, etc..
On the differences Services Tangible Products:1. intangible (intangibility)Service buyers can not see, feel, hear, or try a service before the services are purchased.2. Not durable (perishability)Services can not be stored for future use by the customer.3. Can not be separated (inseparability)Producers and buyers of services must usually be in direct contact during the exchange.4. Heterogeneity (heterogenity)There is a greater chance variations in the implementation of services in product production.
Production CostsProduction costs are costs associated with the production of goods and service provision.
Klasiifikasi Production Costs1. Direct Materials: The cost of raw materials needed for the direct or materials for production. The cost of this material can be directly charged to the product.2. Direct Labor: The cost required for direct labor in the production process.3. Overhead: All production costs other than direct materials and direct labor.
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