Under the AICPA Code of Professional Conduct , Which of the Following

question 54

Multiple Choice

Under the AICPA Code of Professional Conduct , which of the following actions would constitute deceptive advertising?

• A)advertising toofrequently
• B)implying that the CPA had the ability toinfluence an IRS official
• C)promising a favorable result without justification
• D)implying that the CPA had the ability toinfluence an IRS official and promising a favorable result without justification

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Definitions:

Direct Method

A cost allocation method that assigns service departments’ costs directly to producing departments without any intermediate steps.

Support Department Costs

Expenses incurred by service departments within a company that do not directly contribute to making a product but are necessary for the business to operate.

Assembly Department

A section within a manufacturing facility where components are assembled into final products, often involving both human labor and machinery.

Direct Method

A costing method that directly allocates service department costs to producing departments without apportioning them among the service departments themselves.