Identify the False Statement Regarding How Product Costs in a Manufacturing

question 126

Multiple Choice

Identify the false statement regarding how product costs in a manufacturing company differ from product costs in a service or merchandising company.

• A) Both manufacturing companies and service companies incur costs for supplies.
• B) Manufacturing companies accumulate product costs in inventory accounts, while service companies do not.
• C) Products of service companies such as restaurants are consumed immediately.
• D) Most labor costs for merchandising companies are treated as product costs.

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Definitions:

Critical Mass

A threshold level of support, participation, or resources required to sustain a venture or initiate a significant change or action.

Sectors

Broad categories that represent segments of the economy or society, such as public, private, and nonprofit sectors, each with distinct characteristics and functions.

Spectrum Of Organizations

The range or continuum of different types of organizations from those that are purely profit-focused to those entirely non-profit or charitable.

Volunteers

Individuals who offer their time and skills without financial compensation, often to support the activities of non-profit organizations, community projects, or social causes.