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 the 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 classification of expenses according to the business activity they relate to, such as cost of sales, distribution costs, or administrative expenses.

Regarding Presentation of Expenses by Nature Versus Function, Function Refers