A Class of Non-Current Assets as Defined by AASB 116

question 58

Multiple Choice

A class of non-current assets as defined by AASB 116 is a category of non-current assets that:

• A) Were all purchased at the same time by the reporting entity.
• B) All have a similar nature or function in the operations of the entity.
• C) Are disclosed as a single item without supplementary dissection in the financial report.
• D) All have a similar nature or function in the operations of the entity, and are disclosed as a single item without supplementary dissection in the financial report.
• E) All of the given answers.

---

Definitions:

Marginal Costs

The added financial burden of creating one more unit of a product or service.

Average Costs

The total cost of production divided by the quantity produced, often used to evaluate production efficiency.

Fixed Costs

Costs that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance premiums.

Marginal Costs

Marginal costs represent the change in total production cost that arises when the quantity produced is incremented by one unit, essentially the cost of producing one additional unit of a good.