After an Asset Has Been Initially Recognised at Cost It

question 22

Multiple Choice

After an asset has been initially recognised at cost it may be measured using the following measurement method:

• A)liquidation value
• B)accrual
• C)revaluation
• D)realisable value.

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Definitions:

Standard Costs

Predetermined or estimated costs used to measure the performance of a company based on the efficient use of labor and materials.

Actual Costs

The realized expenses incurred in the production of goods or services, as distinguished from estimated costs or budgeted amounts.

Principle of Exceptions

A management principle focusing on the identification and handling of cases that deviate from the norm.

Labor Rates

The amount paid to workers for their services, usually expressed on an hourly basis.