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A Law Firm Would Use a Job Order Cost System

question 28

True/False

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement, such as lawyer time, copying charges, filing fees, and overhead.


Definitions:

Effective Tax Rate

The mean rate at which a person or business is charged with taxes, determined by dividing the total amount of taxes paid by the amount of income that is subject to tax.

Cost Method

A method of accounting for investments where the investment is recorded at cost and only dividend income is recognized.

Goodwill Impairment

A decrease in the value of goodwill, indicating that the acquired company is not performing as expected.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life.

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