Which of the Following Is NOT One of the Recognition

question 24

Multiple Choice

Which of the following is NOT one of the recognition criteria contained within IAS 41 in relation to recognition of a biological asset or agricultural produce as an asset?

• A) the asset has physical form
• B) the entity controls the asset as a result of past events
• C) it is probable that future economic benefits associated with the asset will flow to the entity
• D) the fair value or cost can be reliably measured

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Definitions:

Fixed Product Cost

Costs that do not vary with the level of production or sales, such as salaries of permanent employees and rent.

Factory Supervisor

An individual who oversees the work of employees in a manufacturing facility, ensuring that production goals and standards are met.

Wages

Payments made to employees, typically calculated on an hourly, daily, or piecework basis, for labor or services provided.

Finished Goods

Products that are completed and ready to be sold.