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Select the Incorrect Statement Regarding Service Companies

Question 96

Multiple Choice

Select the incorrect statement regarding service companies.


A) Service companies do not maintain a Finished Goods Inventory account.
B) Service companies accumulate their service costs in a Work in Process Inventory account similar to manufacturers.
C) Service companies may have raw material costs.
D) Understanding the cost of providing a service is just as important as knowing the cost of making a product.

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