According to the IASB, Recognition of a Liability Is Required

question 66

Multiple Choice

According to the IASB, recognition of a liability is required when the defined benefit obligation exceeds the fair value of plan assets.Conversely, when the fair value of plan assets exceeds the defined benefit obligation, the Board

• A)requires recognition of an asset.
• B)requires recognition of an asset if the excess fair value of plan assets exceeds the corridor amount.
• C)recommends recognition of an asset but does not require such recognition.
• D)does not permit recognition of an asset.

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Definitions:

Job Cost

The total cost assigned to a specific job or project, comprising direct materials, direct labor, and allocated overhead.

Manufacturing Costs

Expenses directly related to the production of goods, including labor, materials, and overhead.

Markup

A percentage added to the cost price of goods to cover overhead and profit.

Selling Price

Selling price is the amount of money a buyer pays to purchase a product or service from a seller.