C & C Power Lines Is a Subcontractor That Works

question 61

Short Answer

C & C Power Lines is a subcontractor that works on public utilities. Which of the following is a key characteristic that makes it distinctively a service company? a. It does not maintain inventories.
B) Its products are tangible.
C) Its product costs appear below the line in computing gross margin.
D) All of its costs are period costs.

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Definitions:

Biosynthesis

The process by which living organisms produce complex compounds from simpler ones, often involving enzyme catalysis.

Strecker Synthesis

A chemical synthesis method for producing amino acids by reacting an aldehyde with ammonium chloride and potassium cyanide.

Tryptophan

An essential amino acid used by the body to produce serotonin and melatonin, found in various protein-rich foods.

α-Ketoacid

An organic compound containing both a ketone and a carboxylic acid group, with the ketone group located at the second position from the acid.