Question Details

WhichofthefollowingitemswouldNOTappearonanincomestatementofaserviceorganization



1.	WhichofthefollowingisNOTanexampleofadifferencebetweentheincomestatementofaserviceorganizationandtheincomestatementofamanufacturingorganization?
a.	Aservicecompanywillneverhaveworkinprocess.
b.	Theservicecompanywillnothaveafinishedgoodsinventory.
c.	Fulfillmentcostsmaybeaddedtocostofgoodssoldofaservicecompany.
d.	Researchanddevelopmentexpensesarenotusuallyamajorcomponentofaserviceorganization.


2.	WhichofthefollowingitemswouldNOTappearonanincomestatementofaserviceorganization?
a.	sellingexpenses
b.	costofgoodssold
c.	administrativeexpenses
d.	grossmargin


3.	WhichofthefollowingitemsisNEVERrelevanttothecostflowsofaserviceorganization?
a.	finishedgoodsinventory
b.	materialsinventory
c.	work-in-processinventory
d.	alloftheabovearealwaysrelevant.


4.	AssumethefollowingdataforRodriguezServices,anaccountingfirm,forNovember:

Beginningmaterialsinventory	$20,000
Beginningwork-in-processinventory	40,000
Endingwork-in-processinventory	50,000
Endingmaterialsinventory	10,000
Actualoverheadcosts	100,000
Directmaterialsused	60,000
Directlabor	200,000

WhatisthecostofservicessoldforNovember?a.$370,000	
b.$350,000	
c.$360,000	
d.$330,000	




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