International Financial Reporting Standards (IFRS)is the Main U

question 33

True/False

International Financial Reporting Standards (IFRS)is the main U.S.accounting rule book and is currently created and governed by the Financial Accounting Standards Board.

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Definitions:

Period Costs

Costs that are not directly tied to the production of goods and are expensed in the accounting period they are incurred, such as sales and administrative expenses.

Prime Cost

The combined costs of raw materials and direct labor involved in the production of a product.

Manufacturing Overhead

Refers to all the indirect costs associated with the production process, such as utilities, maintenance, and salaries of supervisors that are not directly tied to the creation of a product.

Administrative Costs

Expenses related to the general operation of a business, including salaries of executive staff, office supplies, and utilities.