Which of the Following Statements Regarding Retainers Is False

question 5

Multiple Choice

Which of the following statements regarding retainers is False?

• A) Before commencing work on a matter for a new client, a lawyer usually requests that a retainer be paid.
• B) Provincial law societies typically restrict the use of retainers to personal injury or product liability cases.
• C) A retainer is deposited into a trust account to the credit of the client.
• D) The lawyer may require the client to "top up" the retainer as funds are withdrawn from the trust account to pay legal bills.
• E) A retainer helps ensure that lawyers will be paid for their legal services.

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Definitions:

Direct Labour Cost

The wages or salaries paid to employees directly involved in the production of goods or services, excluding indirect labor involved in supportive functions.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a predetermined basis such as direct labor hours.

Direct Labour-Hours

The total hours of labor directly involved in the production of goods or services, often used as a basis for allocating overhead costs.

Direct Material Purchased

The raw materials acquired that are directly used in the manufacturing of a product.