Asked by Claudia Reyes on Jun 06, 2024
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IFRS requires the use of absorption costing.
IFRS
Stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.
Absorption Costing
An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.
- Grasp the concepts of absorption costing and its alternatives in inventory accounting.
- Understand the differences in inventory accounting standards between U.S. GAAP and IFRS.
Verified Answer
Learning Objectives
- Grasp the concepts of absorption costing and its alternatives in inventory accounting.
- Understand the differences in inventory accounting standards between U.S. GAAP and IFRS.
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