An Accountant Can Avoid Liability by Proving That His or Her

question 31

True/False

An accountant can avoid liability by proving that his or her negligence was only the proximate cause of the cli?ent's loss.

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Definitions:

Variable Costing

A costing approach where variable costs are assigned to inventory and fixed costs are treated as expenses in the period they are incurred, focusing on the costs that change with production levels.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production output, including rent, salaries of permanent staff, and depreciation of factory equipment.

Production Volume

The total quantity of goods or products that a factory or production system can produce over a specific period.