Which of the Following Is Not a Difference Between Job

question 145

Multiple Choice

Which of the following is not a difference between job costing for service firms and job costing for manufacturing companies?

• A) Service firms generally use fewer direct materials than manufacturing companies.
• B) Service firms' overhead accounts have slightly different titles (e.g., Applied Service Overhead).
• C) Service firms' finished jobs are charged to Cost of Services Billed instead of Cost of Goods Sold.
• D) Service firms' costs are immediately expensed since all work is completed during a period.

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