Cost of goods sold is a major expense of service companies.

Name: Cost of goods sold is a major expense of service companies.
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Question

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Cost of goods sold (COGS) is a major expense of manufacturing, retail, and other businesses that sell physical products. Service companies, on the other hand, typically do not have COGS since they do not sell physical products. Their major expenses usually include salaries, rent, and utility bills.

Cost of Goods Sold Is a Major Expense of Service