What types of companies is there, what defines each and what is typically the most significant cost driver?

1. Service companies: Provides services or intangible products to their customers. Labor is often the most significant cost category. 2. Merchandising companies: Sell goods without changing their basic form. COGS is often the most significant cost category. 3. Manufacturing companies: Purchases materials and components and produce a product. Materials and labor costs are often the most significant cost category.