Which of the Following Is Not Necessarily a Benefit of Harmonisation

question 28

Multiple Choice

Which of the following is not necessarily a benefit of harmonisation and convergence?

• A) Increased relevance, functionality and appropriateness for all countries
• B) Improved understanding and interpretation of financial reports by users in different countries
• C) Increased comparability and consistency
• D) Lower preparation costs for companies that have to produce different financial reports in different countries

---

Definitions:

Direct Material

Primary raw materials directly incorporated into a finished product, an essential component in calculating the cost of goods sold.

Work in Process

Inventory that includes partially finished goods which are still in the production process.

Direct Materials Variances

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Standard Cost System

An accounting system that uses standard costs for valuing inventory and cost of goods sold, based on predetermined prices and rates.