Which of the following is the most significant cost for a service company?

Question

Quizplus · Accepted Answer

Labor is typically the most significant cost for a service company as the services they provide require labor hours to perform. While supplies and indirect costs may also be significant, they are often smaller in comparison to the cost of labor. Manufacturing overhead is not applicable to a service company as they do not manufacture physical products.

Which of the Following Is the Most Significant Cost for a Service