What distinguishes a service item from a non-inventory item in QuickBooks Online?

The distinction between a service item and a non-inventory item in QuickBooks Online is primarily based on the nature of the item being offered. A service item specifically represents labor or services provided to customers, such as consulting, repairs, or maintenance. These offerings do not involve physical goods or inventory that the business holds. On the other hand, a non-inventory item represents a product or good that is not tracked in inventory counts—these are itemized for sale but do not require the business to manage stock levels.

Choosing the answer related to service items being for labor or services while non-inventory items are tangible goods accurately reflects this key difference. This distinction helps businesses accurately categorize their offerings and manage sales transactions effectively within QuickBooks Online. Other options pull on attributes that are not foundational to the core definitions of service and non-inventory items, making them less relevant to understanding their differences.