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The Concept of Conservatism Requires That If a Class of Non-Current

question 72

True/False

The concept of conservatism requires that if a class of non-current assets is revalued a revaluation decrement should be treated as an expense of the period,whereas a revaluation increment should be treated as an increase in a reserve.


Definitions:

Shigeo Shingo

A Japanese industrial engineer known for his influential work in the Toyota Production System and the development of lean manufacturing principles.

Inventory Is Evil

A principle in lean manufacturing and just-in-time (JIT) production that highlights the drawbacks of holding excess inventory, including high costs and potential wastage.

Setup Cost

A financial amount charged for the initial work to configure, prepare, or adjust machinery or equipment for a production run.

Lot Size

The quantity of items that are processed, produced, ordered, or shipped as a batch.

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