Which of the Following Most Nearly Reflects the Requirements of AASB

question 9

Multiple Choice

Which of the following most nearly reflects the requirements of AASB 121?

• A)The presentation currency must be the A$.
• B)When the presentation currency is other than the A$, the reason and justification must be disclosed.
• C)When the presentation currency is other than the A$, the reason must be disclosed.
• D)No limitation is placed on the selection of the presentation currency.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of goods.

Direct Labor

The wages and related expenses for employees who are directly involved in the production of goods or services.

Overhead Cost

Rephrased: Expenditures related to the business's general operations, not directly linked to any specific product or service.

Direct Materials

Raw materials that are directly used in the production of a product and can be easily attributed to that product.