Service businesses such as accounting firms are more concerned with _____ costs than with the cost of supplies.
A) labor
B) equipment
C) office rent
D) fixed asset

Question

Quizplus · Accepted Answer

Service businesses like accounting firms rely heavily on the expertise and time of their employees to provide their services. Therefore, labor costs are typically the highest expense for these types of businesses. While equipment and office rent may also be significant expenses, they are generally less important than labor costs. Fixed assets, such as property or large equipment, may also be important for some service businesses, but they are not as directly tied to the day-to-day operations and profitability of the business as labor costs.

Service Businesses Such as Accounting Firms Are More Concerned with _____