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

Question

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When job costing is used at a service firm, the bill to the client usually shows the billing rate (hourly rate) and the number of hours spent on the job. This is because service firms do not have direct materials costs to allocate, but instead bill for the time spent by their employees providing the service. Indirect costs are typically factored into the billing rate, and the profit on the job is not typically disclosed on the bill to the client.

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