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Service companies do not classify costs as product versus period costs because: multiple choice they do not have any product costs they do not have any period costs their services are not inventoried it is difficult to efficiently classify these costs

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The service companies do not classify costs as product versus period costs because they are not inventoried.

How are the product classified versus period costs?

The costs incurred by a service firm are rather expensed in the reporting period when incurred.

Hence, they do not classify costs as product versus period costs because they are not inventoried.

Therefore, the Option C is correct.

Read more about period costs

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