As in US GAAP, Under IFRS the Costs Associated with Research and Research

question 8

Multiple Choice

As in U.S. GAAP, under IFRS the costs associated with research and development are segregated into

• A) two components, the research phase and the production phase.
• B) two components, the research phase and the development phase.
• C) three components, the planning phase, the research phase and the production phase.
• D) three components, the analysis phase, the development phase and the production phase.

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Definitions:

Underground Economy

Economic activities that occur outside of government regulation and taxation, including both illegal activities and unreported income from legal work.

Intermediate Goods

Products used in the production process to make other goods, not including raw materials.

Final Goods

Products that have completed the manufacturing process and are ready for use by consumers or to be sold as finished goods.

GDP

The total value of all ultimate goods and services generated within a country during a designated period is known as the Gross Domestic Product.