Question

An entity, a contractor, enters into a contract to build a hospital for a customer. The entity is responsible for the overall management of the project and identifies various promised goods and services. The promised goods and services include engineering, site clearance, foundation, procurement, construction of the structure, piping and wiring, installation of equipment, and finishing.

Are the goods and services distinct? Please explain.

Answer 1

Goods and services are distinct in nature the major difference between goods and service were;

GOODS	SERVICES
Tangible in nature	Intangible in nature
It is seperable from the provider	It is inseperable from provider
ownership is transferrable	ownership is non transferable
goods can be returned	service can not be returned
Time lag between production and consumpation of goods	Both production and consumpation is done simultaneously
its creation is simple	evalution of service is complicated
it has future use or multiple use	Single time use
It can be stored	It cann't be stored

In the above mentioned situation majortity of the promised activities are service oriented and accomplishment of these service required goods for the completion.