Under AASB 108,a Change in the Useful Life of a Fixed

question 46

True/False

Under AASB 108,a change in the useful life of a fixed asset which affects the depreciation charge is regarded as a change in accounting policy,not a change in an accounting estimate.

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Definitions:

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Total Variable Costs

The sum of all costs that vary directly with the level of production, such as materials and labor directly involved in the production process.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.

Production Functions

Mathematical relationships expressing the output of a firm, an industry, or an entire economy as a function of inputs.