A service firm's costs are comprised of direct materials, direct labour and manufacturing overhead.

Name: A service firm's costs are comprised of direct materials, direct labour and manufacturing overhead.
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Question

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A service firm does not produce tangible goods and therefore does not have direct materials and manufacturing overhead costs. Their costs primarily consist of direct labor and indirect costs such as overhead expenses like rent, utilities, and supplies.

A Service Firm's Costs Are Comprised of Direct Materials, Direct