Which of the following types of costs would service-oriented companies be more likely to have proportionately more of than manufacturing companies?
A) Facility-level costs
B) Product-level costs
C) Batch-level costs
D) Unit-level costs

Question

Quizplus · Accepted Answer

Service-oriented companies generally need to invest more in providing and maintaining a physical facility or infrastructure to deliver their services, such as office space, equipment, utilities, and communication networks. In contrast, manufacturing companies typically have higher unit-level costs related to the direct materials, labor, and overhead required to make their products. Therefore, service-oriented companies are more likely to have proportionately more of facility-level costs than manufacturing companies.

Which of the Following Types of Costs Would Service-Oriented Companies