BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

Solutions

BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem

Bobby Dee’s is an owner-operated company that details (thoroughly cleans—inside and out) automobiles. Bobby Dee’s is which of the following?

  1. a. Wholesaler
  2. b. Retailer
  3. c. Service firm
  4. d. Manufacturing firm
  5. e. None of these.

To determine

Identify the type of firm of Person B.

Explanation

Service Firm:

Those firms which provide different types of services to the customers are known as service firms. Teaching, dental care, insurance coverage and medical care are some examples of services. In service firms, the process of manufacturing a product does not takes place. Therefore, the beginning inventory and ending inventory are nil.

c.

Person B who is the owner of the firm is provides cleaning services of automobiles to the customers. In this case, the beginning and ending inventory is zero which makes the cost of goods sold nil. The company is providing services to the customers rather than products. Therefore, this option is correct...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Should an economic model describe reality exactly?

Principles of Microeconomics (MindTap Course List)

Define (a) sensitivity analysis, (b) scenario analysis, and (c) simulation analysis. If GE were considering two...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)