Under International Financial Reporting Standards (IFRS) _______ costs are charged off in the immediate period and ________ costs may be carried into future periods.
A) Period; product.
B) Material; overhead.
C) Product; period.
D) Overhead; administrative.

Question

Quizplus · Accepted Answer

Under IFRS, period costs (such as selling, general, and administrative expenses) are expensed in the period they are incurred, while product costs (such as direct materials, direct labor, and manufacturing overhead) are capitalized as part of inventory and expensed as cost of goods sold when the product is sold.

Under International Financial Reporting Standards (IFRS) _______ Costs Are Charged