Question

Question: What is the difference between operating departments and service departments?

Short answer

Operating Department: Department concerned with the production and sale of goods and services.

Service Department: Department assisting the operating department.

Step-by-step solution

Definition of Production Department

The department responsible for manufacturing goods is known as the production department. It includes different functions that convert raw material into finished goods.

Difference between operating departments and service departments

The department of the business entity performs the primary/essential function of producing the goods and services and selling them to the customer. At the same time, the service department is only concerned with assisting the operating department in its smooth functioning.