Because service organizations do not make or sell tangible products, they have no need for managerial accounting.

Question

Quizplus · Accepted Answer

Service organizations still need to manage their costs, budget their expenses, and determine pricing strategies. Managerial accounting plays a crucial role in providing information and analysis to support these decisions. While service organizations may not have physical inventory, they still have operating costs such as labor, supplies, and overhead that require careful management.

Because Service Organizations Do Not Make or Sell Tangible Products