Expenditure Designed to Improve the Quality of the Output of an Asset

question 48

True/False

Expenditure designed to improve the quality of the output of an asset are capitalised into the cost of the asset in accordance with paragraph 7 of AASB 116 Property, Plant and Equipment.

Understand the concepts of variable costs and how they impact pricing and profit.

Calculate the total amount of fixed manufacturing cost incurred.

Calculate contribution margin per unit sold.

Determine total product and period costs for specific production volumes.

---

Definitions:

Vascular Cambium

A layer of meristematic tissue in plants that produces vascular tissues, contributing to the thickness growth of stems and roots.

Secondary Xylem

The part of the xylem that is formed after the plant's initial growth, contributing to the thickening of the plant stem.

Primary Phloem

The part of the plant's vascular system that conducts sugars and other metabolic products downward from the leaves.

Cork Cambium

Cork cambium is a layer of meristematic tissue in plants that produces cork cells to protect and waterproof the plant.