What Should an Investment in a Debt Instrument Be Classified

question 48

Multiple Choice

What should an investment in a debt instrument be classified as when the business model does not include an intent to trade it?

• A)Associate.
• B)Amortized cost.
• C)At fair value through OCI.
• D)At fair value through profit or loss.

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Definitions:

Manufacturing Overhead Budget

An estimate of all manufacturing costs excluding direct materials and direct labor, planned for a specific period.

Direct Labor-Hour

A measure of the amount of time spent by direct labor workers on a specific job or task, often used to allocate labor costs in job-order costing.

Manufacturing Overhead Budget

A financial plan that estimates the indirect costs associated with manufacturing, including utilities, salaries, and maintenance.

Direct Labor-Hour

A measure of the labor directly involved in manufacturing or service provision, calculated in hours.