Costing in service firms differs from the others because service firms do not purchase or:
APay salaries
BPrepare accounts
CPublish reports
DProduce goods
Answer & Solution
Correct answer: D. Produce goods
1. A law office is the example.
2. There is no inventory of goods.
3. They do not produce goods.
_Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._
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