In Order for a Tangible Asset to Be Recognised by an Acquirer

question 11

Multiple Choice

In order for a tangible asset to be recognised by an acquirer under a business combination it must be probable that future economic benefits will flow to the acquirer and:

• A) its fair value can be measured reliably
• B) it must be a non-current item
• C) it must be measured using the present value method
• D)it may not be a non-monetary asset.

---

Definitions:

Job-Order Costing

Job-order costing is a costing method used to determine the cost of manufacturing each custom-made product or job, particularly effective for individual or special products.

Overapplied Overhead

A situation where the overhead allocated to products is more than the actual overhead incurred.

Job-Order Costing

A costing method that assigns manufacturing costs to each individual product or batch, ideal for custom or specialized goods.

Work In Process

Inventory that includes goods partially completed in the manufacturing process but not yet ready for sale.