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Core time tracking distinction between work that can be charged to clients (billable) and internal activities (non-billable). Critical for professional services profitability, utilization rates, and accurate client billing.

The Hawthorne Effect is a phenomenon in time tracking and productivity research where individuals modify their behavior simply because they are being observed. When tracking time, people tend to become more focused and intentional about how they spend their hours, leading to improved productivity even before making structural changes. This effect is particularly relevant to time audits, where awareness of tracking alone can reduce time-wasting behaviors.