In Which of the Following Circumstances Would a CA Be

question 20

Multiple Choice

In which of the following circumstances would a CA be in violation of the "Rules of
Professional Conduct" in quoting a fee to a client?

• A)A fee fixed by a court.
• B)A fee based on the approval of a bank loan.
• C)A fee based on the time estimated to complete the engagement plus out-of-pocket expenses.
• D)A fee bases on the complexity of the engagement.

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service.

Finished Goods

Inventory items that have completed the manufacturing process and are ready for sale to customers.

Direct Labor Cost

The expense related to the work of employees directly involved in the production of goods or services, such as wages for assembly line workers.

Direct Labor-Hours

Direct labor-hours are the total number of hours worked by employees directly involved in the manufacturing process, used as a basis for assigning labor costs to products.