Which of the following statements regarding the differences between managerial accounting applications for manufacturing and service companies is not true?

a.Overhead is an indirect cost incurred in serving customers in a service company.

b.Labor may be a direct cost to customers for a service firm.

c.Service companies require a physical production site.

d.Service companies may use cost of services on the income statement rather than cost of goods sold.

Super Sleep Hotel has 2,000 guests who stayed for two nights and rented 150 rooms. How many guest nights did the hotel have during this period?

a.75

b.150

c.4,000

d.2,000