C & C Power Lines Is a Subcontractor That Works

question 57

Multiple Choice

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.

---

Definitions:

Ovaries

The female reproductive organs in animals and plants where ova or eggs are produced; in animals, they also produce hormones like estrogen and progesterone.

Endometrium

The inner lining of the uterus, which thickens during the menstrual cycle in preparation for possible implantation of an embryo.

Trophoblast

The outer cell layer of a late blastocyst, which in placental mammals gives rise to the chorion and to the fetal contribution to the placenta.

Blastocyst

An early stage of mammalian embryonic development, characterized by a sphere of cells surrounding a fluid-filled cavity and an inner cell mass that will develop into the fetus.