According to International Financial Reporting Standards, the Revaluation of Equipment

question 134

Multiple Choice

According to International Financial Reporting Standards, the revaluation of equipment when fair value exceeds book value, results in:

• A)An increase in net income.
• B)A decrease in net income.
• C)An increase in other comprehensive income.
• D)A decrease in other comprehensive income.

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Definitions:

Direct Labor Cost

The cost of wages and other benefits for workers directly involved in the production process.

Variable Costing

An accounting method that only considers variable costs (costs that change with production volume) in product costing and in the calculation of net income.

Absorption Costing

A method of product costing that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Direct Labor Cost

The wages and related benefits paid to workers who are directly involved in the production of goods or services.