Which of the Following Is True of Service Companies

question 71

Multiple Choice

Which of the following is true of service companies?

• A) All costs of service companies are product costs.
• B) Service companies modify and resell products they buy from manufacturers.
• C) Revenues of service companies are only recorded on cash receipt.
• D) Service companies carry no inventories of products for sale.

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Definitions:

Product Development

The process of bringing a new product to market, including idea generation, design, and manufacturing.

Marketing Objective

A specific, measurable goal that a company aims to achieve through its marketing efforts.

Specific

Distinct or particular to something, not general or vague, often used to describe detailed or focused elements in various contexts.

Measurable

The characteristic of being able to be quantified or assessed through metrics or data.