Which of the following is NOT a physical item included in manufacturing goods?

In the context of manufacturing goods, physical items are tangible objects that can be seen, touched, and felt. Raw materials, subassemblies, and final products all fall within this category as they represent the various stages of physical items used or produced in the manufacturing process.

Raw materials are the basic inputs that undergo transformation during production. Subassemblies are components that have been partially assembled but are not yet complete products. Final products are the finished goods ready for sale to consumers.

Service activities, on the other hand, do not involve physical items. They refer to the intangible actions or processes that do not result in the production of a physical good. This distinction is vital in manufacturing, as it helps differentiate between activities that contribute to creating tangible products and those that provide support or enhance the value of the goods without resulting in a physical item.

Understanding this distinction clarifies why service activities are not included as physical items in manufacturing goods.