Once an Asset Is Acquired,it Continues to Be Measured at

question 39

Multiple Choice

Once an asset is acquired,it continues to be measured at

• A)the amount initially recorded,unless the measurement method changes
• B)the amount initially measured,unless an event occurs that changes the measurement method
• C)the amount initially recorded,unless an event occurs that changes the liability value
• D)the amount initially recorded,unless an event occurs that changes the asset value

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Definitions:

Salespersons' Commissions

This refers to the payment made to sales staff based on a percentage of the sales they generate, as a form of incentive and reward.

Product Cost

The total expenditure incurred to produce, acquire, and sell products, including direct materials, direct labor, and overhead.

Period Cost

Overheads not directly linked to production, charged as expenses in the timeframe they happen.

Direct Materials

The raw materials directly used in the manufacturing of a product, easily traceable to the finished good.