When job costing is used at a service firm, the bill to the client shows

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When job costing is used at a service firm, the bill to the client shows the billing rate and hours spent on the job. This is because the direct labor hours are the primary cost driver for service firms, and the billing rate reflects the firm's cost structure and profit margin. The allocation of indirect costs, the profit on the job, and the actual direct cost of providing the service may also be important to track for internal purposes, but are not typically included on the client's bill.

When Job Costing Is Used at a Service Firm, the Bill