Both US GAAP and IFRS Do Not Require the Use of of Accrual

question 33

True/False

Both U.S. GAAP and IFRS do not require the use of accrual basis accounting.

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Definitions:

Process Costing

A costing method used in manufacturing where costs are assigned to a product based on the process it goes through in the production cycle.

Variable Cost

Costs that vary directly with the level of production or service, such as materials and labor used in production.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term, such as rent, salaries, and insurance.

Product Costing

The process of determining the total cost associated with producing a product, including direct materials, direct labor, and overhead.