The function of an expense method:
A) Focuses on aggregating expenses according to the purpose within the entity (e.g., production, distribution, sales).
B) Is commonly used under US GAAP, but is not allowed under IFRS.
C) Focuses on aggregating expenses within PL according to their type (e.g., salaries, wages, depreciation, etc.).
D) Is preferable in the Notes because it generally provides more relevant information than other methods.

Question

Quizplus · Accepted Answer

The function of an expense method focuses on aggregating expenses according to their purpose within the entity, such as production, distribution, and sales.

The Function of an Expense Method