Under IFRS

question 8

Multiple Choice

Under IFRS

• A)Companies are not allowed to apply fair value to natural resources
• B)The monetary unit assumption is not used since every country has its own unit of measure
• C)The existing conceptual framework is very similar to the conceptual framework under GAAP
• D)All of these answer choices are correct.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before the year begins based on estimated costs and activity levels.

Direct Labor-hour

A measure of the work time involved in producing goods, usually expressed in hours, directly tied to the labor cost of manufacturing.

Accounts Payable

Short-term liabilities representing amounts owed to suppliers or creditors for goods and services received that have not yet been paid for.

Raw Materials

The basic materials and substances that are used in the production of goods, often processed in various ways to create the final product.