Contingency Fee Based Pricing of Accounting Services Is

question 6

Multiple Choice

Contingency fee based pricing of accounting services is:

• A)Always strictly prohibited in public accounting practice.
• B)Never restricted in public accounting practice.
• C)Prohibited for clients for whom attestation services are provided.
• D)Considered an act discreditable to the profession.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.

Breakeven Point

The point at which total cost and total revenue are equal, resulting in no net loss or gain.

Target-Return Pricing

A pricing strategy where the price is set to achieve a targeted return on investment or profit over costs.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's unit cost, ensuring a profit margin is achieved.