Superior Services is a firm that provides audit, tax, and advisory services to over 100 companies in the western United States. It employs thousands of professionals who have obtained accounting,  finance, economics, and business degrees, and who focus on providing value and enhancing the operations of their clients. The firm has been in existence for nearly 70 years, and many of its clients are loyal to Superior and look nowhere else for services.

a. Superior does not sell physical products, but it does need to consider how to price its services in order to make a profit. What costs will the company consider when deciding how much to charge clients for its services?

b. How is accounting for Superior’s operations different from accounting for Model’s and Masterful’s operations? Are there costs that Superior will incur that the other two will not?