In the Conceptual Framework for IFRS, Which One of the Following

question 133

Multiple Choice

In the conceptual framework for IFRS, which one of the following is not a qualitative characteristic of useful accounting information?

• A) relevance
• B) faithful representation
• C) conservatism
• D) comparability

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Definitions:

Equivalent Units

A concept used in cost accounting to denote the amount of completed units that could have been produced given the total amount of direct materials and labor consumed.

Materials Requisitions

Documents or requests used within a company to authorize the retrieval or usage of materials from inventory for production purposes.

Process Cost System

An accounting system that accumulates manufacturing costs and then assigns them to a large number of identical or similar units of output, common in continuous manufacturing environments.