Question

How are manufacturing companies and service companies alike? a. They both produce products. b. They both have product-production costs. c. They both have labor, material, and overhead costs. d. They both have manufacturing costs.

Answer 1

The answer is d.

Step-by-step explanation:

A manufacturing company uses labor and other inputs to transforms raw materials into finished product and then sells the product, like a merchandising company. A service company, on the other hand, does not produce/sell products, instead it provides service.