The costs that follow all have applicability for a manufacturing enterprise. Which of the choices listed correctly denotes the costs' applicability for a service provider? $\begin{array}{lll}\text { Period cost } & \text { Uncontrollable cost } & \text { Opportunity cost }\\hline
\text { A. Applicable } & \text { Applicable } & \text { Not applicable } \
\text { B. Applicable } & \text { Not applicable } & \text { Applicable } \
\text { C. Applicable } & \text { Applicable } & \text { Applicable } \
\text { D. Not applicable } & \text { Applicable } & \text { Applicable } \
\text { E. Not applicable } & \text { Applicable } & \text { Not applicable }
\end{array}$
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E

Question

Quizplus · Accepted Answer

All three costs—period cost, uncontrollable cost, and opportunity cost—are applicable to both manufacturing and service providers. Period costs are incurred regardless of production, uncontrollable costs are beyond the control of management, and opportunity costs represent potential benefits lost when choosing one alternative over another.

The Costs That Follow All Have Applicability for a Manufacturing