Service Orginisation
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Trading Organisation
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Manufacturing Organisation
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An Organization which Provides Services to others as an occupation or business.
The major business process of a service organisation is to provide service at the point of consumption by the customers.
There is no Procurements of Products involved for service organisation.
The cost of services provided depends on the demand for such a service as there is no inventory.
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Goods are Purchases & Sold without Further Processing.
The major business process of Trading concerns are Procurements & Sales.
The time required from procurement to sales will be relatively less for trading Organisation.
The Cost of Goods sold for the trader=(opening trading goods + purchases of trading goods – closing trading goods).
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Raw materials are purchased and converted into a new final product for sales.
The major business processes of manufacturing concerns are procurement, production and sales.
The time required from procurement to sales will be relatively more for manufacturing organisations since the manufacture requires conversion time for processing the goods.
The cost of goods sold for the manufacturer=(opening finishing goods + cost of goods manufactured – closing finished goods).
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Friday, August 17, 2012
Difference between Service, Trading, & Manufacturing
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The cost of services also depends on the cost of replacement if any.
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