In a service firm,the cost associated with time that employees spend on training,paperwork,and supervision is considered part of manufacturing overhead.Service firms incur many indirect costs that cannot be traced to specific clients or accounts.Examples include the nonbillable time that employees spend on training,paperwork,and supervision.These indirect costs are treated just like manufacturing overhead in a factory.

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Quizplus · Accepted Answer

This statement is true as it accurately describes how indirect costs in service firms are treated like manufacturing overhead in factories.

In a Service Firm,the Cost Associated with Time That Employees