Service-sector companies ________.
A) do not produce tangible products but cost accounting is still utilized in service firms.
B) do not manufacture a product and therefore do not apply or adapt cost accounting to their operations.
C) purchase and then sell tangible products by changing their basic form and therefore need cost accounting.
D) purchase merchandise then sell it without changing its basic form and therefor do not need cost accounting systems.

Question

Quizplus · Accepted Answer

Service-sector companies do not produce tangible products, but they still incur costs that need to be accounted for through cost accounting. Cost accounting helps service-sector companies analyze their expenses and optimize their profits.

Service-Sector Companies ________