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:

Introspection

The process of examining one's own thoughts and feelings.

Self-analysis

is the process by which an individual reflects on and critically assesses their thoughts, feelings, and behaviors to gain self-awareness.

Traditionalists

Individuals or groups who adhere to long-established practices, values, or trends, often resistant to change.

Individualists

Persons who prioritize personal independence and self-reliance, often valuing their own goals and motivations over those defined by groups or society.