AASB 141 Requires That Biological Asset Be Recognised at Cost

question 50

True/False

AASB 141 requires that biological asset be recognised at cost until the asset is sold.

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Definitions:

Cost Behaviour

The manner in which a cost changes in relation to changes in business activity levels.

Manufacturing Overhead

All indirect costs associated with the production process, such as the cost of utilities, maintenance, and factory equipment depreciation.

Facility Rates

Charges or costs associated with the use of facilities, such as rent, utilities, or maintenance expenses in various contexts.

Activity-based Rates

A pricing approach where rates are determined based on the activities required to produce a product or deliver a service, allocating costs more accurately.