From the course: Accounting Foundations: Managerial Accounting
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
Cost flows in service firms
From the course: Accounting Foundations: Managerial Accounting
Cost flows in service firms
- While we have defined and discussed the nature of manufacturing businesses, an increasingly important type of business in the United States is the service sector. What is a service business? Well, a service business is any organization whose main economic activity involves producing a nonphysical product that provides value to a customer. It is important to understand how costs are accounted for in a service industry, because these types of businesses are the largest and fastest growing sector in our economy. Service companies actually share a lot of similarities with manufacturing companies. Like manufacturers, most service companies perform a significant number of activities to prepare their service products for sale and delivery to their customers. Typically, a lot of direct labor and overhead is involved in a service business. Service work is a very real production activity. However, what services firms provide is…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.