Select the incorrect statement regarding service companies.
A. Material, labor, and overhead costs of service companies are treated as period costs.
B. Because service companies do not carry inventory, it is impossible to determine product costs.
C. Because the products of service companies are consumed immediately, there is no finished goods inventory on their balance sheets.
D. Managers of service companies are expected to control costs, improve quality, and increase productivity just like managers of manufacturing companies.
Answer: B
You might also like to view...
In balancing the risks and benefits that are part of every ethical decision, managers receive guidance from each of the following except
a. justice b. self interest c. risk minimization d. proportionality
What are the characteristics of a transformational leader? How do they transform their followers? Select someone that you believe to be a transformational leader, and illustrate your points.
What will be an ideal response?
Several female employees at General Electric's Salem, Virginia, plant who were pregnant presented a claim for disability benefits under the plan to cover the period they were absent from work as a result of their pregnancies. The company denied these claims on the grounds that the plan did not provide disability benefit payments for such absences. This case had a significant impact on the passage of the ________.
A. Rehabilitation Act B. Pregnancy Discrimination Act C. Equal Pay Act D. Americans with Disabilities Act
When Maja, an attorney and a U.S. citizen, crosses the border between the United States and Canada, she expects the U.S. Department of Homeland Security to search her laptop. To avoid disclosing confidential client data during the search, Maja could
a. keep client files on a device that she does not take abroad. b. carry client files abroad only in hard copy. c. refuse to consent to a border search of her laptop. d. assert her right to be free from unwarranted government intrusion.