The Main Area of Practice Covered in the IFAC Code

question 17

Multiple Choice

The main area of practice covered in the IFAC Code of Ethics for Professional Accountants is:

• A) fundamental principles applicable to all professional accountants.
• B) fundamental principles applicable to professional accountants in public practice.
• C) fundamental principles applicable to professional accountants in business.
• D) all the above.

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Definitions:

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the volume of production, such as salaries of supervisors and rent for factory space.

Deferred

Describes expenses or incomes that have been incurred but not yet realized, affecting financial statements in subsequent periods.

Released

In economic or financial contexts, this term usually refers to information, products, or assets that have been made available to the public or specific markets.

Absorption Costing

In this accounting procedure, the full scope of manufacturing costs, covering direct materials, direct labor, and both kinds of manufacturing overhead—variable and fixed—is accounted for in the product's pricing.