Assessment of Skills and Knowledge(ASK) in Fundamental Business Concepts Practice Test

Outputs of production can be classified as:

1. Tangible items only

2. Intangible items only

3. Both tangible and intangible items

4. Neither tangible nor intangible items

The correct answer is: Both tangible and intangible items

Outputs of production encompass both tangible and intangible items, making the correct classification the one that includes both. Tangible items refer to physical goods that can be touched and measured, such as cars or furniture, while intangible items are non-physical services or experiences, such as consulting, education, or software applications. Many businesses create products that fall into both categories; for instance, a company might manufacture a smartphone (tangible) while also providing a warranty service (intangible). This duality reflects the diverse nature of production outputs in various industries, emphasizing how organizations can provide value through both physical products and services that contribute to a customer's overall experience.