Which of the following items is NEVER relevant to the cost flows of a service organization?
A) finished goods inventory
B) materials inventory
C) work-in-process inventory
D) All of these are always relevant.

Question

Quizplus · Accepted Answer

Finished goods inventory is not relevant to the cost flows of a service organization because service organizations do not produce finished goods. Instead, they provide intangible services to their customers. Materials inventory and work-in-process inventory are also not always relevant to service organizations, depending on the nature of their business.

Which of the Following Items Is NEVER Relevant to the Cost