According to the AICPA Code of Conduct,which of the Following

question 97

Multiple Choice

According to the AICPA Code of Conduct,which of the following acts is generally forbidden to CPAs in public practice?

• A) Purchasing bookkeeping software from a hi-tech development company and reselling it to tax clients.
• B) Being the author of a "TaxAid" newsletter promoted and sold by a publishing company.
• C) Having a commission arrangement with an accounting software developer to receive 4 percent of the price of programs recommended and sold to audit clients.
• D) Engaging a marketing firm to obtain new financial planning clients for a fixed fee of $1,000 for each successful contact.

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Definitions:

Responsibility Center

A unit within an organization, such as a department or division, accountable for controlling costs, generating revenues, or managing assets.

Profit Center

A separate business unit or department within a company that is responsible for generating its own revenue and profit.

Cost Center

A department within a company that does not directly add to profit but still incurs costs, such as the customer service department.

Managerial Responsibility

The accountability of managers to make decisions and oversee a company's operations to meet its goals.