The Best Way for a Practitioner to Confirm His or Her

question 10

Multiple Choice

The best way for a practitioner to confirm his or her understanding of the discussion in a telephone conversation with a client is to:

• A) tape all client telephone calls.
• B) take accurate notes during the conversation.
• C) send a hard copy of a follow-up letter to the client.
• D) Important discussions with clients should only take place face-to-face.

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Definitions:

Activity Changes

Refers to alterations in the volume or pace of operations or transactions within a business over a period.

Variable Costs

Costs that vary directly with the level of production or volume of output, such as raw materials and labor directly involved in manufacturing.

Activity Levels

A measure used in cost accounting to evaluate the relation between the cost of a particular activity and the level of activity executed.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.