Which of the Following Would Not Normally Operate as a Service

question 2

Multiple Choice

Which of the following would not normally operate as a service business?

• A) pet groomer
• B) supermarket
• C) lawn care company
• D) styling salon

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Definitions:

Underapplied

In accounting, underapplied refers to when the allocated overhead costs are less than the actual overhead costs incurred.

Direct Materials Cost

The expense associated with the raw materials directly used in the production of goods.

Unadjusted Cost

The initial cost of an item or service before any adjustments like discounts, allowances, or modifications are made.

Cost of Goods Sold

The specific costs incurred in the making of goods that a company sells, which include materials and labor.