Final Answer:
service firms a) Each client or account is equivalent to a process in a process costing firm.
Step-by-step explanation:
In service firms, each client or account is not equivalent to a process in a process costing firm. Instead, service firms typically treat each client or account as a distinct job or project. The work done for each client is unique, and costs are tracked for each specific client or account rather than being averaged as in a process costing system.
Options b, c, and d are correct statements:
b) The accounting system will track the time and resources spent serving a specific client or account.
c) Managers of service firms need cost information for various purposes, including pricing services, budgeting, cost control, and assessing the profitability of different types of clients.
d) The primary driver used to assign costs in service firms often involves billable hours, as time spent on client work is a significant factor in determining costs.