Service companies do not have product costs,so they often consider all operating expenses as part of their cost of service.

Name: Service companies do not have product costs,so they often consider all operating expenses as part of their cost of service.
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Question

Quizplus · Accepted Answer

Since service companies do not have tangible products, they do not have product costs. Instead, they consider all their operating expenses, including salaries, rent, utilities, and supplies, as part of their cost of providing the service.

Service Companies Do Not Have Product Costs,so They Often Consider