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Commerce · Q317

Costing

Graduate and Post Graduate · Commerce · question 317

Q317

For companies in service sector, cost which is not considerable is

A.
Inventoriable costs
Answer
B.
finished costs
C.
factory overhead costs
D.
manufacturing overhead costs

Answer: Option A

Solution

Answer: Option A
Solution:
For companies in service sector, cost which is not considerable is Inventoriable costs. Inventoriable costs, also known as product costs, refer to the direct costs associated with the manufacturing of products for revenue generation.