Which of the Following Are in Accordance with IFRS

question 288

Multiple Choice

Which of the following are in accordance with IFRS?

• A) Accrual basis accounting
• B) Cash basis accounting
• C) Both accrual basis and cash basis accounting
• D) Neither accrual basis nor cash basis accounting

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Definitions:

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to related products and services based on their usage.

Selling Price

The price at which a product or service is offered to the buyer.

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services.

Activity-Based Costing

A financial allocation practice that designates overhead and indirect costs to related products and services, determined by the activities they necessitate.