In Which of the Following Situations Would a PA Still

question 12

Multiple Choice

In which of the following situations would a PA still be considered independent?

• A)The PA received a set of professional quality, graphite golf clubs from a client as an expression of appreciation for the quality of the work performed.
• B)The PA is suing the client for non-payment of fees.
• C)The fees from one audit client comprise sixty-five percent of the PA's total billings for the year.
• D)The PA serves in an honorary and non-participating role as a director for a non-profit audit client.

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Definitions:

Average Total Cost (ATC)

Total cost divided by output.

Average Variable Cost (AVC)

Variable cost divided by output.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the average cost per unit of output.

Average Variable Cost

Average variable cost (AVC) refers to the total variable costs per unit of output, covering expenses that change with the level of production, such as materials and labor.