The correct answer is A. Inventoriable costs.
Inventoriable costs are the costs of the goods that a company has produced but has not yet sold. These costs are included in the cost of goods sold on the income statement when the goods are sold.
For companies in the service sector, there are no goods to produce, so there are no inventoriable costs. The costs of providing services are expensed as incurred on the income statement.
B. Finished costs are the costs of goods that have been completed but not yet sold. These costs include the cost of materials, labor, and overhead.
C. Factory overhead costs are the indirect costs of manufacturing a product. These costs include costs such as depreciation, insurance, and property taxes.
D. Manufacturing overhead costs are the costs of manufacturing a product that are not directly attributable to the product. These costs include costs such as indirect labor, indirect materials, and factory overhead.
For companies in the service sector, the costs of providing services are expensed as incurred on the income statement. This means that the costs of providing services are not included in inventory and are not considered to be inventoriable costs.