Corporations Following IFRS Must Classify Their Expenses Either by Nature

question 77

True/False

Corporations following IFRS must classify their expenses either by nature or by function.

---

Definitions:

Earn Income

The process of receiving payment through work, investments, or business operations.

Unit Variable

A measurement that reflects how variable costs change per unit of production or activity level.

Unit Fixed

This specifies a cost or charge that remains constant per unit regardless of changes in the level of activity or volume of production.

Costs

Costs refer to the expenditures incurred by a business in the process of generating revenues.