The AICPA Council Has Designated the Following Bodies to Pronounce

question 24

Multiple Choice

The AICPA Council has designated the following bodies to pronounce accounting principles under the Accounting Principles Rule except the

• A)Financial Accounting Standards Board.
• B)Auditing Procedures Board.
• C)Opinions of the Accounting Principles Board.
• D)Governmental Accounting Standards Board.

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Definitions:

High-low Method

A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.

Monthly Fixed Component

The portion of fixed costs, such as rent or salaries, that does not change with the volume of production or sales in a given month.

Lubrication Cost

The expense associated with maintaining machinery through oiling and greasing to ensure smooth operation.

Variable Lubrication Cost

A variable cost associated with the amount of lubrication needed for machinery in the manufacturing process, which varies with the level of production activity.