Which Is TRUE About Services

question 38

Multiple Choice

Which is TRUE about services?

• A) Services can never be homogeneous and repetitively produced.
• B) Some services may require that a sequence of uniform processes be performed.
• C) Services cannot have work-in-process inventories.
• D) All services require job-order costing.

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Definitions:

Risk Level

The degree of uncertainty and/or potential financial loss inherent in an investment decision.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with dividends that are paid out before those to common shareholders.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Target Capital Structure

The optimal mix of debt, equity, and other securities a company aims to hold, balancing risk and return to maximise shareholder value.