Describe the Factors That Should Be Considered in Allocating Service

question 68

Essay

Describe the factors that should be considered in allocating service department costs.

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Definitions:

Fair Value

is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Replacement Value

The cost to replace an asset with another of similar function and efficiency.

AASB 138

The Australian Accounting Standards Board standard that specifies the accounting treatment for intangible assets not covered by other standards.

Internally Generated

Refers to assets, benefits, or revenues produced within a company through its own processes and activities.