International Financial Reporting Standards (IFRS) mandate that manufacturing overhead must be treated as a product cost for financial reporting purposes.

Question

Quizplus · Accepted Answer

This is true according to the international accounting standards set by the International Accounting Standards Board (IASB). Under IFRS, manufacturing overhead is included in the cost of inventory and is treated as a product cost for financial reporting purposes.

International Financial Reporting Standards (IFRS) Mandate That Manufacturing Overhead Must