Practice prompt · Q:statement-presentation-comprehensive-income-and-disclosure/practice-service-cost

Place the cost of a service

Identify a direct cost of customer services.

Updated Sep 13, 2026 Review due Dec 13, 2026
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A company sells maintenance services. Technicians perform the work for customers. Where does their pay belong when it is a direct cost of those services?

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Answer: a

The pay is a direct cost of the service sold. It reduces gross profit.