Which of the Following Is a Principle of the Code

question 27

Multiple Choice

Which of the following is a principle of the Code of Ethics of the International Ethics Standards Board for Accountants but not a principle found in the AICPA Professional Code of Conduct?

• A) Integrity
• B) Professional Behavior
• C) Confidentiality
• D) Objectivity

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Definitions:

Contribution Margin Ratio

The ratio that indicates the percentage of each sale that exceeds the variable costs, calculated by subtracting variable costs from sales revenue and dividing by sales revenue.

Fixed Costs

Fixed costs are business expenses that do not change with the level of goods or services produced, such as rent, salaries, and insurance premiums, providing stability in business planning.

Break-Even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and one has "broken even".

Operating Leverage

A measure of how revenue growth translates into growth in operating income, highlighting the proportion of fixed costs in a company's cost structure.