Service companies use a "cost of goods sold, inventory, and purchases" budget to calculate the amount of merchandise to purchase.

Question

Quizplus · Accepted Answer

Service companies do not sell physical products, so they would not have a cost of goods sold, inventory, or purchases to budget for. They would instead focus on budgeting for expenses related to providing their services, such as salaries, rent, and supplies.

Service Companies Use a "Cost of Goods Sold, Inventory, and Purchases