four areas in which services differ from products are intangibility,inseparability,heterogeneity, and perishability. Intangibility refers to the nonphysical nature of services as opposed to products. Inseparability means that production and consumption are inseparable for services. Heterogeneity refers to the greater chances for variation in the performance of services than in the production of products. Perishability means that services cannot be inventory but must be consumed when performed. These differences affect the types of information needed for planning. control, and decision making in the production of services. Exhibition 5-2 illustrates the features associated with the production of services and their interface with the cost management system.