A company that provides services (not goods)to its customers may incur costs that are appropriately classified as product-level costs.

Question

Quizplus · Accepted Answer

Product-level costs are costs associated with a specific product or service line, and in the context of a service company, these could include costs directly related to the delivery of a specific service, such as licensing fees for software used to provide the service, training costs for employees specific to that service, or costs for materials directly used in providing the service.

A Company That Provides Services (Not Goods)to Its Customers May