A Cost Is Considered Direct If It Can Be Traced

question 76

Multiple Choice

A cost is considered direct if it can be traced to a particular cost object in a cost effective way which means it can be

• A) traced easily with the aid of technology
• B) traced in a manner that is accurate
• C) traced in an economically feasible way
• D) possibly traced accurately with an investment in hardware and software

Identify the conditions under which accountants can be held liable to third parties and understand the scope of accountant-client privilege.

Describe the elements of and remedies for breach of contract in the context of accounting services.

Understand the implications of the Sarbanes-Oxley Act on the accounting profession and regulatory compliance.

Recognize the circumstances under which accountants may face civil or criminal liability for securities laws violations.

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Definitions:

Price-elasticity-of-demand Coefficient

A measure that calculates the responsiveness of the quantity demanded of a good to a change in its price.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded, typically downward sloping.

Widgets

A hypothetical or generic manufactured good often used in economic models and discussions.