IFRS Includes All of the Following Bases of Measurement Except

question 43

Multiple Choice

IFRS includes all of the following bases of measurement except ________.

• A)present value of future cash flows
• B)historical cost
• C)current cost
• D)net realizable value

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Definitions:

Contribution Margin

Contribution margin is the revenue remaining after deducting variable costs, used to cover fixed costs and profit.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

Variable Costing

A pricing approach that incorporates only variable production expenses—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of products.

Absorption Costing

A costing method that assigns all manufacturing costs, both fixed and variable, to products.