Which of the Following Statements Is Correct

question 13

Multiple Choice

Which of the following statements is correct?

• A) IFRS requires that any net revenues or expenses derived from an asset before it is ready for use be included in income; ASPE requires that such revenues and expenses be included in the asset's cost.
• B) ASPE requires that any net revenues or expenses derived from an asset before it is ready for use be included in income; IFRS requires that such revenues and expenses be included in the asset's cost.
• C) Both IFRS and ASPE require that any net revenues or expenses derived from an asset before it is ready for use be included in income.
• D) Both IFRS and ASPE require that any net revenues or expenses derived from an asset before it is ready for use be included in the asset's cost.

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Definitions:

Fixed Cost

An expense that remains constant regardless of the volume of products or services produced or sold.

Variable Cost

Expenses that directly fluctuate in relation to the amount of goods or services produced, including labor and materials.

Marginal Cost

The increase in cost resulting from the production of an extra product or service unit.

Marginal Cost

The cost of producing one more unit of a good or service, which may change with the level of output.