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 Superiors operations different from accounting for Manufacturing and Merchandising operations? Are there costs that Superior will incur that the other two will not?