Question

Businesses that sell services rather than tangible items don't have a line for _____ on their statements.

Answer 1

cost of goods sold (COGS)

Step-by-step explanation:

Generally service businesses do not include cost of goods sold in their income statement. Cost of goods sold (COGS) is calculated when a business sells goods (= ending inventory + purchases - beginning inventory), but when you only sell services, what COGS can you have?