Service Firms

question 108

Multiple Choice

Service firms:

• A)tend to use a lot of direct materials in addition to billable hours.
• B)tend to incur few indirect costs that cannot be traced to specific clients or accounts.
• C)assign indirect costs to individual clients or accounts based on an allocation base such as billable hours.
• D)use process costing to assign costs to individual clients or accounts.

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Definitions:

Single Status

The legal or social condition of being unmarried or not in a romantic relationship.

Achieved Status

A social position that a person gains through their own efforts, accomplishments, or actions.

Social Position

Social position signifies an individual's place or status within a society or social hierarchy, often determined by factors like occupation, wealth, and education.

Instrumental Communication

Communication that is goal-oriented and used as a means to achieve specific objectives or outcomes.