Which of the Following Descriptions Best Explains the Difference Between

question 41

Multiple Choice

Which of the following descriptions best explains the difference between a billing system and a costing system for a service firm?

• A) A costing system accumulates the amounts that the service costs the firm to provide.
• B) A billing system estimates the fees to be charged to the client for the service based on chargeout rates per billable hour.
• C) A billing system accumulates the amounts that the client is to be charged for the service rather than the costs of the service.
• D) A billing system estimates the fees to be charged to the client for the service based on chargeout rates per billable hour AND a billing system accumulates the amounts that the client is to be charged for the service rather than the costs of the service.

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Definitions:

Procedures

Established methods or ways of doing something, often detailed and written down, especially in the context of business operations or professional practices.

Collective Efficacy

A group's shared belief in its conjoint capabilities to organize and execute the courses of action required to produce given levels of attainments.

Group's Shared Perception

The common understanding or viewpoint held by members of a group about a situation, idea, or each other.

Specific Tasks

Particular and defined pieces of work or duties assigned to someone as part of a job or course of study.