The income statement of a service-sector firm reports:
A)period and inventoriable costs but at different times;the reporting varies.
B)inventoriable costs only.
C)both period and inventoriable costs.
D)period costs only.

Question

Quizplus · Accepted Answer

Service-sector firms do not have inventories, as they do not sell physical products. Therefore, they only report period costs, which are the expenses incurred in operating the business.

The Income Statement of a Service-Sector Firm Reports