Question

difference between production
department and service department

Answer 1

Answer:

A service department is part of the factory operations, but does not produce the factory's output. Rather, it provides services to the factory's production departments. ... In traditional cost accounting each service department's costs are then allocated to the production departments.

Answer 2

The difference between the production department and the service department is as follows -

• In a factory's system, the production department is directly associated with the the production or manufacturing works. For example, we can say that, assembly department, machine department etc.
• On the other hand, the service department is associated with providing necessary services to the production department and manufacturing of goods isn't supported by this department. For example, we can say that, QC control department, costing department etc.