Service organizations do not develop standards for
A) any service costs.
B) overhead.
C) direct materials.
D) labor.

Name: Service organizations do not develop standards for A) any service costs. B) overhead. C) direct materials. D) labor.
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Question

Quizplus · Accepted Answer

Service organizations do not have direct materials as they do not produce tangible goods. Instead, they provide intangible services. Therefore, there would be no development of standards for direct materials in service organizations.

Service Organizations Do Not Develop Standards for