Which of the following statements is true?
A) Service firms have little need for determining the cost of their services.
B) The concept of product costing is relevant only for manufacturing firms.
C) The cost of year-end inventory appears on the balance sheet as an expense.
D) Service companies use cost information for planning and control purposes.
E) Mining and petroleum companies have no inventoriable costs.

Question

Quizplus · Accepted Answer

Service companies, like those in manufacturing, require cost information for effective planning, budgeting, and management. This information helps in making strategic decisions, pricing services, and controlling operations.

Which of the Following Statements Is True