Which of the Following Is a Way That IFRS Disclosure

question 83

Multiple Choice

Which of the following is a way that IFRS disclosure requirements of property, plant, and equipment differ from U.S. GAAP disclosure requirements?

• A) Companies disclose the accumulated depreciation at the end of the fiscal year by major class or in total.
• B) Companies provide a general description of the method(s) used in computing depreciation with respect to major classes of depreciable assets.
• C) Companies provide a reconciliation of the carrying values at the beginning of the year to the end of the year.
• D) Companies report the carrying value of property, plant, and equipment in total or by major class of long-term assets on the balance sheet.

Examine the implications of division of labor and specialization on productivity and economic efficiency.

Understand the concept of the production possibilities frontier (PPF) and its assumptions.

Differentiate between attainable and unattainable points on the PPF.

Understand the implications of efficient resource use on the PPF.

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Definitions:

Absorption Cost

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.

Price Per Unit

Price per unit describes the cost of a single unit of product or service, providing a basis for evaluating and comparing the value of similar items.

Full Cost

The comprehensive total of all costs associated with producing a product or delivering a service, including direct, indirect, fixed, and variable costs.