Which of the Following Statements Concerning Rules of Conduct and Ethical

question 34

Multiple Choice

Which of the following statements concerning rules of conduct and ethical principles is FALSE?

• A)No one ethical principle can provide guidance for developing all professional rules of conduct.
• B)Since ethical behaviour is a personal choice,imposing rules of conduct places too great a restraint on the ability of the professional accountant to make good decisions.
• C)Strict reliance on rules in all situations can produce undesirable effects;ethical principles are needed to guide behaviour in such instances.
• D)Rules of conduct provide specific duties or imperatives,but ethical principles provide overall guidance on proper behaviour.

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Definitions:

Total Job Cost

The total expense attributed to producing a specific job, including materials, labor, and overhead costs.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to individual units of production based on a chosen activity base.

Machine-Hours

A measure of production volume or activity based on the number of hours machines are operated in the manufacturing process.

Fixed Manufacturing Overhead

Fixed manufacturing overhead consists of the production costs that do not vary with the volume of production, such as rent for the manufacturing facility, salaries of manufacturing managers, and depreciation of factory equipment.