Which of the Following Is True of Expense Classification Under

question 129

Multiple Choice

Which of the following is true of expense classification under IFRS?

• A) The nature-of-expense method identifies the major cost drivers of the company.
• B) The nature-of-expense method does not classify the expenses into various subtotals.
• C) The function-of-expense method is simple to apply because allocations of expense to different functions are not necessary.
• D) IFRS allows only function-of-expense method for expense classification.

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