Regarding presentation of expenses by nature versus function, function refers to
A)the type of expense, such as depreciation, purchases, or employee benefits.
B)whether the expense actively contributed to generation of income.
C)the business activity to which the expense relates.
D)the name of the cost centre responsible for the expense.

Question

Quizplus · Accepted Answer

Function refers to the business activity to which the expense relates, such as cost of sales, administrative expenses, or selling expenses.

Regarding Presentation of Expenses by Nature Versus Function, Function Refers