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