Identify the False Statement Regarding How Product Costs in a Manufacturing

Multiple Choice

Identify the false statement regarding how product costs in a manufacturing company differ from product costs in a service or merchandising company.

A) Both manufacturing companies and service companies incur costs for supplies.
B) Manufacturing companies accumulate product costs in inventory accounts, while service companies do not.
C) Products of service companies such as restaurants are consumed immediately.
D) Most labor costs for merchandising companies are treated as product costs.