What Kinds of Temporary Differences Related to Income Taxes Can

question 13

Multiple Choice

What kinds of temporary differences related to income taxes can arise under IFRS that don't occur under U.S.GAAP?

• A)book and tax differences related to the revaluation of property,plant,and equipment for book purposes and cost method for tax purposes.
• B)book and tax differences related to the calculation of impairments for book purposes with no like adjustment for tax purposes.
• C)both (A)and (B)
• D)use of the LIFO inventory method for book purposes and the FIFO inventory method for tax purposes.

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Definitions:

Job P505

This likely refers to a specific job or project identifier within an organization or accounting system but without context, its specific significance can vary.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated in advance based on estimated costs and activity levels.

Direct Labor-hour

An alternative term for direct labor-hours indicating the individual hours of labor directly involved in the production process, crucial for cost calculation.

Predetermined Manufacturing Overhead

Predetermined Manufacturing Overhead is an estimated amount of manufacturing overhead costs that is assigned to each unit of product based on a predetermined rate, before actual costs are known.