Which of the following is true of expense classification under IFRS?
A) The nature-of-expense method identifies the major cost drivers of the company.
B) The nature-of-expense method does not classify the expenses into various subtotals.
C) The function-of-expense method is simple to apply because allocations of expense to different functions are not necessary.
D) IFRS allows only function-of-expense method for expense classification.

Question

Quizplus · Accepted Answer

Under IFRS, the nature-of-expense method does not classify expenses into various subtotals; instead, it groups expenses according to their nature, such as raw materials, labor, etc.

Which of the Following Is True of Expense Classification Under