Accounting Standard AASB 11 Joint Arrangements Does Not Apply to Investments

question 26

Multiple Choice

Accounting Standard AASB 11 Joint Arrangements does not apply to investments in joint ventures:

• A) by venture capital organisations.
• B) by unit trusts.
• C) that are held for sale.
• D) all of the above.

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Definitions:

Direct Labor-hours

A measure of the labor time directly involved in the production of goods, used as a base for allocating overhead in some costing systems.

Fixed Overhead

Expenses that remain constant for a certain level of production or period of time, such as rent, salaries, and insurance, not directly tied to the level of production.

Work In Process

Inventory that includes goods partially through the production process but not yet complete.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, utilities, and salaries of managers.