The fund-flow model and service activities

Abstract

Even though the fund-flow model was developed to represent production processes with tangible outputs, there is nothing to prevent its application being extended to other forms of activity which generate added value. This chapter offers a preliminary investigation of the application of the fund-flow model to service activities, with special reference to transport operations and the development of information assets. The rationale behind such an extension is quite simple: a pure service does not exist. In rendering it, the direct and indirect participation of certain funds and/or flows will be required. However, this incursion into the area of services does not aspire to be anything more than an introduction. Tertiary activities form a highly diverse and ever-changing universe. Consequently, attempting to cover their idiosyncrasies in any depth would require a study that goes far beyond the scope of this book.