Which of the following costs is most likely not applicable in a service costing environment?
A) Rent
B) Direct materials
C) Utilities expenses
D) Direct labour

Question

Quizplus · Accepted Answer

Direct materials are not typically applicable in a service costing environment as services usually do not involve physical materials being used. The other costs listed (rent, utilities expenses, direct labour) are all applicable in a service costing environment.

Which of the Following Costs Is Most Likely Not Applicable