Question: Service Organization Income Statement Allstar Exposure designs and sells advertising services to small, relatively unknown companies. Last month, Allstar had sales commissions costs of $50,000, technology costs of $75,000, and research and development costs of $200,000. Selling expenses were $10,000, and administrative expenses equaled $35,000. Sales totaled $410,000.
Required: 1. Prepare an income statement for Allstar for the past month.
2. Briefly explain why Allstar's income statement has no line item for Cost of Goods Sold.