Which of the Following Statements Is Correct in Relation to the Use

question 17

Multiple Choice

Which of the following statements is correct in relation to the use of the revaluation model to subsequently account for E&E assets?

• A) The revaluation model can only be used to account for tangible E&E assets.
• B) The revaluation model can be used for tangible E&E assets where the fair value can be reliably measured.
• C) The revaluation model can be used for intangible E&E assets where the fair value can be reliably measured.
• D) The revaluation model can be used for tangible E&E assets only where there is an active market for the assets.

---

Definitions:

Direct Labor-Hours

The total hours worked directly on the manufacturing of goods.

Direct Labor Rate

The average cost paid per hour of direct labor, typically used in calculating the direct labor costs of producing goods or services.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming to more accurately reflect the resources consumed.

Direct Labor-Hours

The total number of hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating labor costs to products.