Examples of Costs Listed in AASB 116 That Would Not

question 25

Multiple Choice

Examples of costs listed in AASB 116 that would not be considered to represent directly attributable costs include:

• A)costs of introducing a new product or service
• B)administration and other general overhead costs
• C)costs of relocating or reorganising part or all of an entity's operations
• D)all of the above

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Definitions:

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Salvage Value

The predicted remaining value of an asset at the termination of its functional life.

Working Capital

The amount by which current assets exceed current liabilities, indicating the liquidity level available to a business for day-to-day operations.

Salvage Value

The calculated resale value an asset holds once it ceases to be useful.