Service companies generally do not have Work in Process and Finished Goods inventory accounts.

Name: Service companies generally do not have Work in Process and Finished Goods inventory accounts.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

Service companies typically do not produce or sell physical goods, so they do not have Work in Process or Finished Goods inventory accounts as seen in manufacturing or retail companies. Instead, their primary inventory account could be considered Intangible assets or Prepaid expenses.

Service Companies Generally Do Not Have Work in Process and Finished