The Statement in Respect of the IASB/FASB Convergence Project Established

question 10

Multiple Choice

The statement in respect of the IASB/FASB convergence project established in 2002 that is incorrect is:

• A)A project to develop a joint conceptual framework has been added to the agenda
• B)The project will focus on changes in the environment since the IASB and the FASB each issued their original frameworks
• C)Work on several phases of the project will be carried out concurrently
• D)Private sector and not-for-profit sector issues will be considered simultaneously.

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Definitions:

Cost Category

A classification of costs based on their nature or function within a business, often used for accounting and budgeting purposes.

Step-Down Method

The step-down method is a cost allocation approach used in accounting, which assigns overhead costs to various departments in steps, based on specified allocation bases.

Operating Departments

The divisions within a company where the primary functions related to the production of goods or provision of services are carried out.

Direct Method

An accounting approach used to allocate service department costs directly to producing departments without considering services rendered between service departments.