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LO 4.8When compared to manufacturing companies, service industries do not generally use ________ as a component of product cost.

User Ivan Vovk
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Answer: The correct answer is "manufacturing overhead".

Explanation: When compared to manufacturing companies, service industries do not generally use manufacturing overhead as a component of product cost.

This is because the service companies are not manufacturing a product but they are offering a service, therefore these service providers usually refer to factory overheads as "operating overhead."

User Jochen Ritzel
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