The Accountant Is Expected to Use the Principles of the Professional

question 17

Multiple Choice

The accountant is expected to use the principles of the professional code of conduct to

• A)determine whether to accept a client
• B)determine the testing to perform
• C)determine the type of report to issue
• D)determine both the scope and nature of the services he performs

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Definitions:

Indirect Materials

Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it.

Machine Hours

A measure of the total time that production equipment is operational, used to allocate machine-related expenses to products.

Cost Behaviour

The characteristic of costs that they either remain stable or change in response to variations in business activity levels.

Sales in Units

The total number of individual items sold by a company, as distinguished from sales measured in currency.