The Inventory Costs of Services Include

question 141

Multiple Choice

The inventory costs of services include

• A) equipment and training costs.
• B) management and material costs.
• C) service delivery and spoilage costs.
• D) salary of service provider and equipment costs.
• E) salary of service provider and training costs.

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Definitions:

Service Business

An enterprise offering services or intangible items to its clientele instead of material goods.

Periodic Inventory System

An inventory accounting system where updates are made at set intervals, typically leading to annual updates on inventory status and valuation.

Income From Operations

This refers to the profit realized from a business's ongoing core business operations, excluding deductions of interest and taxes.

Periodic Inventory Method

An accounting method where the inventory is physically counted and valued at the end of a specific period to determine cost of goods sold and ending inventory.