Which of the Following Is TRUE for a Service Company

question 122

Multiple Choice

Which of the following is TRUE for a service company?

• A) Expenses are all period costs.
• B) Expenses are all product costs.
• C) Income statement includes gross profit.
• D) Balance sheet includes finished goods inventory.

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Definitions:

Channel Intermediaries

Firms or individuals such as wholesalers, agents, and retailers who serve as a link between manufacturers and consumers in the distribution process.

Customer Service

A support that companies provide to their customers before, during, and after purchasing and using goods or services, aimed at enhancing customer satisfaction.

Transactional Functions

Essential activities involved in the buying, selling, or exchanging of goods and services, including tasks such as order processing, billing, and payment handling.

Marketing Channel

A set of practices or activities necessary to transfer the ownership of goods from the point of production to the point of consumption.