Which Statement Is Correct

question 50

Multiple Choice

Which statement is correct?

• A)Costs can continue to be capitalized in the post development phase.
• B)The project must meet IAS 38 criteria before development costs can be capitalized.
• C)The development phase includes generating new ideas or searching for new materials.
• D)The research phase includes designing, constructing or testing a prototype.

---

Definitions:

Total Job Cost

The complete cost associated with a specific job or project, including materials, labor, and overhead.

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual products or job orders, calculated before the period begins based on estimated costs and activity levels.

Machine-Hours

A measure of production time, indicating the total hours that machines have been operating during a given period.

Fixed Manufacturing Overhead

The total of all costs that remain constant regardless of the level of production within a certain range.