Shifting Resources Away from Producing One Good in Order to Produce

question 44

Multiple Choice

Shifting resources away from producing one good in order to produce another is an example of

• A)Unlimited resources
• B)Limited wants
• C)Opportunity cost
• D)None of the above

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Definitions:

Provision

A liability of uncertain timing or amount.

IFRIC 1

relates to the International Financial Reporting Interpretations Committee's guidance on the treatment of changes in decommissioning, restoration, and similar liabilities, affecting how entities account for such changes.

AASB 137

An Australian accounting standard that deals with the accounting and reporting of provisions, contingent liabilities, and contingent assets.

Provision for Removal

An amount set aside or reserved in the accounts to cover the future cost of dismantling an asset and restoring the site, typically related to property, plant, and equipment.