Which of the Following Activities Is Within the Scope of AASB

question 37

Multiple Choice

Which of the following activities is within the scope of AASB 6 "Exploration for and Evaluation of Mineral Resources"?

• A) Expenditures incurred before the exploration for and evaluation of mineral resources, such as expenditures incurred before the entity has obtained the legal rights to explore a specific area;
• B) Expenditures incurred after the technical feasibility and commercial viability of extracting a mineral resource are demonstrable;
• C) Expenditures incurred after the exploration for and evaluation of mineral resources, such as expenditures incurred for the establishment of access to the deposit or field;
• D) Expenditures incurred in the determination of the technical feasibility and commercial viability of a particular prospect, such as determining the volume and grade of the deposit or field;
• E) None of the given answers.

---

Definitions:

Direct Labor Hours

A measure of the total hours worked directly on producing goods, typically used in manufacturing and cost accounting.

Departmental Overhead Rate

A method used to allocate indirect costs to specific departments based on their respective activities or usage.

Cutting Department

A division in manufacturing where materials are cut to size or shape before moving to the next production phase.

Direct Labor Hours

The total hours worked by employees who directly participate in the production of goods detailed.