According to IFRS, All of the Following Costs Should Be

question 20

Multiple Choice

According to IFRS, all of the following costs should be included in the cost of inventory except:

• A)cost of materials for a special order.
• B)direct labour involved in manufacturing the product.
• C)supervisors' salaries in the plant.
• D)storage costs.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Zero-Based Budgeting

A budgeting method where all expenses must be justified for each new period, starting from a "zero base," rather than just adjusting previous budgets.

Cash Budget

An estimate of cash inflows and outflows over a specific period, used to manage and plan for cash needs.

Minimum Cash Balance

The lowest amount of cash that a company aims to maintain in its accounts to adequately meet its operational and financial obligations.