If a CPA Leaves a Job in Public Accounting to Commence

question 15

Multiple Choice

If a CPA leaves a job in public accounting to commence work as a member of a company's internal accounting staff,this CPA:

• A) No longer has to be concerned about conflicts of interest
• B) Still has to be concerned about conflicts of interest involving former clients as well as conflicts of interest arising at her new workplace
• C) Only has to be concerned about conflicts of interest involving her former clients because industry accountants are not subject to the AICPA's conflict of interest rules
• D) Does not have to be concerned about conflicts of interest that may arise between loyalty to her new employer and loyalty to her former employer

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Definitions:

Job-Order Cost Sheet

A detailed document that tracks the production costs directly associated with a specific job or order, including materials, labor, and overhead costs.

Direct Materials

Raw materials used in the manufacturing of a product, which can be directly attributed to that product.

Direct Labour

Direct Labour refers to the wages and salaries of employees who are directly involved in the production of goods or services, considered as a variable cost.

Direct Labour Cost

The total expense a company incurs for paying the wages of direct labor employees directly involved in producing goods or services.