In some service organizations,a variation from normal costing is helpful because actual direct labor costs,the largest component of total costs,can be difficult to trace to jobs as they are completed.

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This is true. In service organizations, such as consulting firms or law firms, the actual direct labor costs can be difficult to trace to individual jobs as they are completed. This is because employees may work on multiple projects or tasks simultaneously, and it can be challenging to accurately allocate their labor costs to each job. Using a variation from normal costing, such as activity-based costing, can help to more accurately allocate costs to specific jobs or activities based on their actual usage of resources.

In Some Service Organizations,a Variation from Normal Costing Is Helpful