Under AASB 101 the Income Statement (Called Profit or Loss

question 7

True/False

Under AASB 101 the income statement (called profit or loss statement in this text) does not require an amount called 'income' to be recorded anywhere in the statement.

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Definitions:

Rate Variance

The difference between the actual rate of expense or income and its expected (standard) rate, often used in variance analysis.

Direct Labor-Hours

The cumulative hours employees directly participating in the production process have worked.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of materials.

Variable Manufacturing Overhead

Costs that vary in total in direct proportion to changes in the volume of production, such as indirect materials and utility costs directly tied to production.